Operations method for providing wireless communication services and network and system for delivering same

ABSTRACT

The present invention is directed to an improved operations method for a wireless communication system. The improved business method, operations method, network and system of the present invention includes the steps of delivering cellular services to the mass market, reducing peak capacity, increasing overall capacity utilization, improving capital utilization, providing an “all-you-can-eat” pricing model, and designing capacity based upon where the users live, work, and play.

FIELD OF THE INVENTION

[0001] The present invention relates to an improved business method,operations method, network and system for delivering wirelesscommunications services. The business method, operations, and networkand system of the present invention may be used separately, or incombination. The invention is adapted to higher overall networkcapacity, lower peak capacity, and higher overall network usage,relative to prior known methods, networks, and systems for deliveringwireless communications services. The present invention may feature flatrate billing of users. This is in contrast to prior known wirelessservices, in which services are delivered on a per call or per minuteusage charge basis. This change in pricing model affects usage andcapacity of the network in certain ways. In a preferred embodiment, thesystem and network of the present invention employs flat rate billing,achieves high capacity utilization of network components, and achieveslower peak capacity. These features enable the network and system of thepresent invention to handle a higher overall volume of calls with lesscostly central network components and more streamlined operations thanconventional cellular systems.

BACKGROUND OF THE INVENTION

[0002] Wireless communications services represent the fastest growingsegment of the telecommunications industry worldwide. Although theTelecommunications Act of 1996 was intended to open the competitiveenvironment in the United States, allowing many new entrants into thelocal access loop, growth has been constrained by several factors. Someof these factors are endemic to any communications system (limitedbandwidth, high capital costs, etc.). Other constraints are imposed bythe business models that have come to be generally accepted in theindustry. Most land line and wireless operators typically derive themajority of their revenues and profits from a relatively few—“heavy” and“business”—users of their networks. The heavy and business user segmentshave come to be considered the most desirable segment of the wirelesscustomer population, due to their relative price inelasticity. Land lineproviders have typically focused on business users. Accordingly, perminute of usage pricing of cellular services has been adapted to thatconventional business model, which was introduced in the late 1980's.That conventional model, however, imposes constraints on operations andnetworks, and presents high usage charges to casual users. Thesepatterns have, in fact, been favored by cellular operators due to thehigh profitability levels they offer.

[0003] A conventional wireless system of the type known prior to thepresent invention is described by Robert C. Raciti, in CELLULARTECHNOLOGY (July 1995), which is incorporated herein by reference. Priorknown cellular networks are typically constructed to achieve arelatively uniform level of coverage over a preselected service area.The service area is extended to a greater metropolitan area, namely,major population centers and major highway connections. Generally, theservice area is specifically adapted to serve roaming traffic, which isbilled at a higher rate. Consequently, roaming is favored in prior knownsystems. The service has been marketed on the breadth of coverage aswell as complex features, targeted at the heavy and business users.

[0004] Network capacity is rationed, to avoid over use of the network,by maintaining pricing levels that tend to limit casual usage. Use ismetered by price, and constrained by that pricing within the designlimits of the system. When the existing wireless communicationsoperators have looked at moving their market focus from the typicalbusiness users to a broader market, they have typically introducedprepaid services that allow the consumer to control the costs but haverequired very high per minute usage charges.

[0005] Wireless communications networks using this conventional businessmodel typically comprise three basic components: Cell sites with RF basestations; Mobile Telephone Switching Offices (MTSO); and mobile phonesthat are provided to subscribers. Each base station contains a radiotransceiver and controller, and provides radio communications to themobile phone units operating in its cell. The cells are typicallyengineered into a network that is deployed in a hexagonal cell pattern,in order to provide local, regional, or national cellular coverage.

[0006] The MTSO links calls together using traditional copper, fiberoptic, and/or microwave technology and acts as a central officeexchange, allowing users to place a call on the local and long distancepublic telephone systems or mobile to mobile traffic. It allows mobilecommunication devices in the cell to dial out and alerts devices in thecell of incoming calls. The MTSO continuously monitors the quality ofthe communications signal and transfers the call to another base stationthat is better suited to provide communications services to the mobiledevice.

[0007] The mobile communication devices comprise hand-held phones, carphones, notebook computers, personal digital assistants, pen-basedcomputers, palm-top computers, pagers, hand-held e-mail devices (such asthose produced under the Blackberry™ brand), and portable datacollection devices. The present inventors anticipate that, although themajority of cellular traffic has traditionally been voicecommunications, the relative proportion of traffic that comprises data,text, and potentially video, messages is increasing and is expected toincrease dramatically in the coming years. The present invention isintended to work with all wireless communications devices. When thesevarious types of mobile units communicate with the network, they mustregister with the system by subscribing with a wireless operator.

[0008] Most wireless operators of prior known systems have arrangementswith other operators allowing users to roam. Roaming occurs when themobile unit is outside the coverage area of their “home” cellularservice provider and an alternative cellular provider handles thecommunication. Mobile units may also be connected to the Public SwitchedTelephone Network (PSTN) operated by an Incumbent Local Exchange Carrier(ILEC), Competitive Local Exchange Carrier (CLEC), Regional BellOperating Company (RBOC), long distance carrier, or othertelecommunications provider.

[0009] The radio spectrum used for wireless (cellular) communicationscomprises many bands that are allocated and used for commercial,personal, and military use. Fifty (50) MHZ of spectrum is allocated tocellular networks in the 824-849 MHZ and the 869-894 MHZ bands. Thisspectrum has been allocated into two 25 Mhz bands and has generally beenallocated to very large service providers. Other bands of spectrum havebeen allocated for wireless communications. PCS is a wirelesscommunications network that operates at a radio frequency of 1.9 GHz.This spectrum has been subdivided into three 30 Mhz and three 10 Mhzbands that are used by both large service providers and many new, moreinnovative service providers. The allocation of radio spectrum in theUnited States is described in the NTIA Manual of Regulations andProcedures for Federal Radio Frequency Management, Ch. 4, at 4-4 to 4-91(2000), which is incorporated herein by reference.

[0010] Several types of network access are available in the UnitedStates including, without limitation: Advanced Mobile Phone Systems(AMPS), Time Division Multiple Access (TDMA) (in two formats), and CodeDivision Multiple Access (CDMA). AMPS is the cellular standard that hasbeen extensively deployed in North America and has been commerciallyavailable since 1983. The current cellular standard describing accessmethods to the network is IS-553. It divides 50 MHZ of spectrum into 832frequency channels, each 30 KHz wide. Various organizations, such as thePortable Computer and Communications Association (PCCA), modemmanufacturers, computer manufactures, and service providers, have workedtogether in defining the IS-553 interoperability standard.

[0011] Time Division Multiple Access (TDMA) is a digital access methodthat allocates time slots to different users, allowing them to sharesimilar radio frequency channels. TDMA divides each frequency channelinto six time slots and allocates two slots to each user. This timedivision of the carrier signal increases the network capacity by 300% (afactor of 3). Standard IS-54, currently upgraded to IS-136, describes adual mode network access method allowing mobile units the choice ofusing TDMA or AMPS operation.

[0012] Code Division Multiple Access (CDMA) sends multiple messages overthe same wide frequency channel that is decoded at the receiving end.Each mobile unit in a cell is assigned a different spreading sequence.This allows multiple users to share the same frequency spectrum. The useof CDMA increases network capacity by an order of magnitude (a factor often). CDMA network access standards are specified in standard IS-95,which is incorporated herein by reference. TDMA and CDMA digital accessmethods offer superior performance in terms of higher capacity, improvedvoice quality, encryption for communication privacy, and integrationwith digital terrestrial networks.

[0013] Cellular Digital Packet Data (CDPD) is a technology standardsponsored by the RBOCs and McCaw Cellular. CDPD overlays packetswitching onto the existing cellular voice network, and transmits datapackets over the idle capacity. This packet overlay is based on anInternet protocol backbone and does not need the call setup proceduresthat are required for switched voice calls. This makes CDPD adapted toshort, bursty message applications, such as point-of-sale (POS) creditcard verification, vehicle dispatch, package tracking, and e-mail. CDPDgenerally increases the network utilization, yet, excessive data trafficmay cause interference with existing cellular calls.

[0014] There are a number of other wireless applications that may beused in conjunction with cellular telephony or separately: digitalcommunications such as CDMA; cordless telephones; paging; specializedmobile radio (SMR); and satellite communication. Networks based ondigital communications typically have a greater capacity than analognetworks for carrying voice and data traffic than analog networks.

[0015] Michael E. Porter, in COMPETITIVE STRATEGY (1980), which isincorporated herein by reference, described various stages through whichproducts progress through their life cycles: introduction; growth;maturity; and decline. Prior to the present invention, the cellularindustry has remained in its growth phase. Some characteristics ofPorter's growth phase are: growth in use; widening of the buyer group;improved reliability; competitive product improvements; increasedadvertising; increased channels of distribution; and high profitmargins. The cellular industry has shared these features prior to thepresent invention.

[0016] There are approximately 100 million cellular customers in theUnited States. Cellular service is growing at a rate of approximately 1million new customers every month. The buyer group has widened,extending the initial buyer group of large businesses to include mostbusinesses. System reliability has improved, greatly. There have beenmany competitive product improvements, such as digital technologyadvancements, voicemail, encryption, and enhanced battery life. Cellularproducts and services are featured widely in advertising on television,radio, print, and on the Internet. Alternate channels of distributionare also becoming more popular. For example, retail office supply,electronic, and computer chains are actively marketing cellular phonesand services. Throughout this period of growth, cellular operators haveenjoyed high profit margins.

[0017] McCaw Cellular was one of the early entrants into the wirelesstelephone market. The business model developed by McCaw (AMPS) has cometo be generally accepted as the predominant business model for renderingcellular service, at least in the United States. A typical cellularsystem configuration of the type that was known prior to the presentinvention is described by Heith Knightson, in D1—CELLULAR NETWORKINFRASTRUCTURE—VOICE AND SHORT MESSAGE SERVICES, TelecommunicationsStandards Advisory Council of Canada (1997), which is incorporatedherein by reference. As described by Knightson, AMPS is based on analogRF technology operating on frequencies 825-844 MHZ and 870-899 MHZ. Thedefinitive standard for AMPS voice services is TIA IS-53 CellularFeatures Description, which is incorporated herein by reference. Themechanisms to implement these services are given in TIA IS-41 CellularRadio Telecommunications Intersystem Operations, which is incorporatedherein by reference.

[0018] Prior to about 1997, AMPS was generally considered to be the maintechnology for providing mobile phone service. Currently, digitaltechnologies, such as TDMA and CDMA have gained ascendency. Thesedigital technologies offer improved voice quality and increasedcapacity. Standards have been promulgated for each technology, which areincorporated herein by reference. Although the technologies for TDMA andCDMA are different from AMPS, some of the equipment, infrastructure, andstandards currently deployed for AMPS may be used in CDMA and TDMAnetworks. The radio portions (physical layer) of the mobile phones andbase stations have been modified to support these new RF technologies.

[0019] The cellular network is viewed by the PSTN as an alternative EndOffice, where voice traffic originates and terminates. The interfacebetween the PSTN and cellular network operates SS7 protocols, which areincorporated herein by reference. Within the cellular network, thesignaling and voice traffic operate over separate trunking facilities,just as in the land line network. The SS7 protocol is used to carrysignaling information over these out-of-band common channel signalingfacilities. This separation of signaling and voice traffic is alsopreserved over-the-air. Between the mobile phone and the base station,the Forward Control Channel and Reverse Control Channel convey signalinginformation. Voice traffic is transmitted over the Forward Voice Channeland Reverse Voice Channel.

[0020]FIG. 1 illustrates the relationship between the cellular networkinfrastructure and the PSTN in wireless communications systems of thetype that were common in the cellular industry prior to the presentinvention. The IS-41 messages are routed via Signaling Transfer Points(STPs). The STPs handle network routing. In particular, the route to theHome Location Register (HLR) for a specific mobile phone is handled bythe STP. This has the advantage that, as the network expands and rangesof mobile phone numbers are assigned to different HLRs or new rangescome into service, only the routing tables in the STP need be updated.Mobile Switching Centers (MSCs) do not need to maintain fill routingtables to all other MSCs. FIG. 2 illustrates the functions andinterfaces that support voice services. The interface reference pointsare defined in the IS-41 standard, which is incorporated herein byreference, to ensure correct interoperation of equipment.

[0021] A typical cellular system prior to the present invention wasunderstood to comprise the following functional elements:

[0022] Authentication Center (AC): The AC manages the authenticationinformation related to the Mobile Station (MS). The AC may, or may notbe located within, and be indistinguishable from an Home LocationRegister (HLR). An AC may serve more than one HLR.

[0023] Base Station (BS): The BS describes all of the radio equipment ata single location used for serving one or more cells. The Base Stationcomprises a Base Station Controller and the Base Station Transceiversystems.

[0024] Equipment Identity Register (EIR): The EIR maintains userequipment identity information. The nature, purpose, and utilizationcontinues to develop and the present inventors intend that all such usesto which these components may be put are considered part of the presentinvention. The EIR may, or may not, be located within, and beindistinguishable from an Mobile Switching Center (MSC).

[0025] Home Location Register (HLR): The HLR is the location register towhich a user identity is assigned for record purposes such as subscriberinformation (e.g. ESN, MDN, Profile Information, Current Location,Authorization Period). The HLR may, or may not be located within, and beindistinguishable from an MSC. The HLR may serve more than one MSC. TheHLR may be distributed over more than one physical entity.

[0026] Integrated Services Digital Network (ISDN): The ISDN is definedby the appropriate ANSI T1 Standards, which are incorporated herein byreference.

[0027] Mobile Station (MS): The MS is the interface equipment used toterminate the radio path at the user side. It provides the capabilitiesto access network services by the user.

[0028] Mobile Switching Center (MSC): The MSC provides the interface foruser traffic between the cellular network and other public switchednetworks, or other MSCs in the same or other cellular networks.

[0029] Public Switched Telephone Network (PSTN): The PSTN is defined bythe applicable ANSI T1 Standards.

[0030] Visitor Location Register (VLR): The VLR is the location registerother than the HLR used by an MSC to retrieve information for handlingof calls to or from a visiting subscriber. The VLR may, or may not belocated within, and be indistinguishable from an MSC. The VLR may servemore than one MSC.

[0031] The main feature of the cellular network voice service whencompared with POTS (plain old telephone service) is the geographicalmobility of the phone. The equipment and interfaces depicted in FIGS. 2and 3 perform two main functions. First, they transmit and receive voicesignals over the radio spectrum. This is primarily the function of theBase Station and Mobile Station, which occurs over the Um interface.Second, they track where each mobile phone is within the cellularnetwork. This is called “mobility management” and is performed by theMSC, referencing and dynamically updating the HLR and VLR databases. Asshown in FIGS. 2 and 3, this occurs over the C, D, B, and E interfaces.

[0032] The interfaces and standards associated with these two functionsof RF transmission and mobility management are distinct to cellularvoice services. The other interfaces connect the cellular network to theexisting land line telephone network (PSTN or ISDN), supportauthentication of users and equipment (AC and EIR), or support specialfeatures such as the Short Message Service (as shown in FIG. 3), thatare not shown in the previous figures. These functions of networkinterconnection, security, and special services are not unique to thecellular network. Similar functions can be found in all land linetelephone networks.

[0033] The generally accepted consensus standards applicable to wirelesscommunications systems of the type known prior to the present inventionare identified in Table 1, each of which standards are incorporatedherein by reference: TABLE 1 Standards Applicable to WirelessCommunications Interfaces Applicable Standards Comments InterfaceITU/ISO ANSI/TIA/EIA A: BS to MSC interface n/a n/aIS-634 Ai: MSC toPSTN interface X.25 SS7IS-93-A B: MSC to VLR interface X.25 SS7IS-41.2,IS-41.3 C: MSC to HLR interface. X.25 SS7IS-41.2, IS-41.3 D: VLR to HLRinterface X.25 SS7IS-41.2, IS-41.3 Di: MSC to ISDN interface ?T1.611IS-93-A E: MSC to MSC interface X.25 SS7IS-41.2, IS-41.3, IS-41.4F: MSC to EIR interface not defined not defined; H: HLR to AC interface.X.25 SS7IS-41.2, IS-41.3 Q: X.25 SS7IS-41.2, IS-41.3 Um: BS to MSinterface, which n/a n/aIS-54-B corresponds to the air interface (TDMAand AMPS), IS-88 (NAMPS), IS-95-A (CDMA)

[0034] Consensus standards for wireless communications networks havebeen promulgated by various bodies. Table 2 identifies the mostprominent standards, each of which are incorporated herein by reference.TABLE 2 Wireless Communications Standards ANSI/TIA/EIA Standards:TIA/EIA-660 Uniform Dialing Procedures and Call Processing Treatment forCellular Radio Telecommunications; Telecommunications IndustryAssociation TIA/EIA-664 Cellular Features Description;Telecommunications Industry Association TIA/EIA/IS-93 Cellular RadioTelecommunications Ai - Di Interfaces Standard; TelecommunicationsIndustry Association TIA/EIA/IS-41-C.l Cellular Radio TelecommunicationsIntersystem Operations: Functional Overview; Telecommunications IndustryAssociation TIA/EIA/IS-41-C.2 Cellular Radio TelecommunicationsIntersystem Operations: Intersystem Hand-off Information Flows;Telecommunications Industry Association TIA/EIA/IS-41-C.3 Cellular RadioTelecommunications Intersystem Operations: Automatic Roaming InformationFlows; Telecommunications Industry Association TIA/EIA/IS-41-C.4Cellular Radio Telecommunications Intersystem Operations: Operations,Administration, and Maintenance Information Flows and Procedures;Telecommunications Industry Association TIA/EIA/IS-41-C.5 Cellular RadioTelecommunications Intersystem Operations: Signaling Protocols;Telecommunications Industry Association TIA/EIA/IS-41-C.6 Cellular RadioTelecommunications Intersystem Operations: Signaling Procedures;Telecommunications Industry Association TIA/EIA/IS-732 Cellular DigitalPacket Data Specification; Telecommunications Industry Association.TIA/EIA/IS-634 800-MHZ A-Interface Supporting AMPS, NAMPS, CDMA, TDMAAir Interfaces; Telecommunications Industry AMPS: EIA/TIA-553 MobileStation - Land Station Compatibility Specification CDMA: TIA/EIA/IS-95 AMobile Station - Base Station Compatibility Standard for Dual-ModeWideband Spread Spectrum Cellular System; Telecommunications IndustryAssociation TIA/EIA/IS-97 Recommended Minimum Performance Standards forBase Stations Supporting Dual-Mode Wideband Spread Spectrum CellularMobile Stations; Telecommunications Industry Association TIA/EIA/IS-637Short Message Services for Wideband Spread Spectrum Cellular System;Telecommunications Industry Association DMH: TIA/EIA/IS-124 CellularRadio Telecommunications Intersystem Non- Signaling Data Communications(DMH); Telecommunications Industry Association NAMPS: TIA/EIA/IS-88Mobile Station - Land Station Compatibility Standard for Dual-ModeNarrow Band Analog Cellular Technology; Telecommunications IndustryAssociation TIA/EIA/IS-91 Mobile Station - Base Station CompatibilityStandard for 800 MHZ Analog Cellular; Telecommunications IndustryAssociation TDMA: TIA/EIA/IS-54-B Cellular System Dual -Mode MobileStation - Base Station Compatibility Standard; TelecommunicationsIndustry Association TIA/EIA/IS-136 800 MHz TDMA Cellular - RadioInterface - Mobile Station - Base Station Compatibility Standard;Telecommunications Industry Association ANSI T1 Standards: T1.111Signaling System Number 7 - Message Transfer Part (MTP) T1.112 SignalingSystem Number 7 - Signaling Connection Control Part (SCCP) T1.114 SystemNumber 7 - Transaction Capabilities Application Part (TCAP) T1.611Signaling System Number 7 (SS7) - Supplementary Services forNon-ISDN-Subscribers T1.209 Operations, Administration, Maintenance, andProvisioning (OAM&P) - Network Tones and Announcements ITU-T Standards:T.50 International Reference Alphabet (IRA) formerly Alphabet No. 5 (orIA5) Other Related Documents: SR-TSV-002275 Notes on the LEC Networks;Bell Communications Research Inc. TR-NWT-000776 Network InterfaceDescription for National ISDN-1 Customer Access; Bell CommunicationsResearch Inc.

[0035] In addition to the above services, many wireless communicationsnetworks also feature Short Message Service (SMS). SMS includes thefollowing additional elements:

[0036] Message Center (MC): The MC stores and forwards short messages.The MC may also provide supplementary services for Short MessageService.

[0037] Short Message Entity (SME): The SME composes and decomposes shortmessages. The SME may be implemented in many ways, such as an operatorassisted service or interactive voice response service. An SME may, ormay not be located within, and be indistinguishable from, an HLR, MC,VLR, MS, or MSC.

[0038] The interface reference points in FIG. 4, which support the ShortMessage Service, are:

[0039] Interface M is the SME to MC interface;

[0040] Interface N is the MC to HLR interface; and

[0041] Interface Q is the MC to MSC interface.

[0042]FIG. 3 depicts a cellular network, of the type known prior to thepresent invention, which further comprises a Message Center (MC) andShort Message Entity (SME), in addition to the infrastructure shown inFIG. 2. SMS is a data service available over the AMPS network. It isdefined in IS-41, and is included under voice services because it is anintegral part of the IS-41 specification. SMS allows a single packet ofdata to be transmitted to or from a mobile phone. SMS does not requirepacket fragmentation or re-assembly. Message integrity must bemaintained across all interfaces, including the air (Um) interface. TheSMS attempts to deliver the message whenever the mobile phone isregistered on the cellular network, even when the phone is engaged in avoice or data call.

[0043] By early 1998, although the market continued in what Porterdefines as its growth stage, some of the constraints imposed by theaccepted cellular operation model had become apparent to the presentinventors. Existing cellular business models in the United States hadbecome stagnant. Only one business model as the McCaw, “AMPS” model—hadcome into widespread use and the growth of the wireless market had beenlimited to relatively price-insensitive users based upon that model.Accordingly, the present inventors perceived that known business methodslimit future growth. These constraints include price, access tocredit-challenged users, ability of users to control their monthlyexpenditures under prior billing models, high network operating costs,high back office support costs, high capital costs, low capitalutilization, and other related limitations.

[0044] Capacity constraints were widely perceived to be a problem. Yet,the only apparent technical solutions were approaches to expand peaksystem capacity. Techniques to utilize existing capacity moreefficiently, or using emerging technology through modification of thebusiness model, were unknown.

[0045] For example, Motorola and Qualcomm have both been very active inadvancing the development of cellular technology. Kaschke, et al., U.S.Pat. No. 6,078,821, discloses a cordless radiotelephone system having anextendable geographic coverage area and a method therefor. Cukak, etal., U.S. Pat. No. 6,058,106, discloses a method for providing acentrally coordinated peer-to-peer wireless communications network.Smith, et al., U.S. Pat. No. 5,432,780, discloses a high capacitysectorized cellular communication system. Willkie, et al., U.S. Pat. No.5,956,651, discloses a cellular telephone interface system for AMPS orCDMA data services. None of these solutions, however, sought to resolveany capacity limitations through modification of the basic McCaw-type,cellular business model, described above.

[0046] Hence, prior to the present invention, entrenched business andpricing models limited the attractiveness of cellular services primarilyto business users, who were relatively insensitive to pricing. AverageRevenue Per User (ARPU) of many cellular operators of these systems hadstagnated. Most cellular networks were employing the same business andtechnical models, resulting in little relative differentiation betweencellular operators. Operators typically resisted the incorporation ofnew technology. Changes in one portion of a regional or nationwidenetwork could have implications for the entire network. Although mostsystems had been built to a relatively high peak capacity level, averagecapacity utilization in most systems was relatively low. Capitalutilization was low. Customers were severely segregated based uponpricing. Pricing, in turn, tended to restrict usage.

[0047] The cellular industry typically characterizes usage patternsbased upon the number of minutes a phone is used each month. Table 3below, identifies typical usage patterns by the number of minutes usedper month: TABLE 3 Traditional Market Segmentation Prior to the PresentInvention Based upon Minutes of Usage (MOU) Usage Minutes of Use perMonth Average Revenue per User Very Heavy >500 >$100 Heavy 400-500min./mo. >$75  Business 200-300 min./mo. $40-75 Consumer 100-150min./mo. $25-40 Mass Market 15-20 min./mo. $15-25

[0048] In a cellular network of the type known prior to the presentinvention, the Mass Market customer group was considered sensitive toprice, relative to heavy users. Prior to the present invention, due tothe deficiencies of the generally accepted business model for cellularoperations, marketing efforts were not generally devoted to thiscustomer segment. Yet, this lowest customer segment (in terms of usageand ARPU) is also the most numerous. Customer growth of most systems,therefore, was inherently limited by their business models. Designlimitations prevented them from expanding into the mass market.

[0049] These pricing constraints, and resulting constraints on overallusage, were simply accepted by most operators. These constraints enabledoperators to reduce the overall system capacity to a lower relativelevel, with the anticipation that consumers would shift their personaleconomics to afford these pricing constraints. Yet, this model did notavoid the substantial capital cost of building networks to service peakcapacity levels. Moreover, due to the slowness of incorporating newtechnologies, voice quality of cellular networks was generallyconsidered inferior to that of wireline networks. Hence, the prior knowncellular operations business models had failed to deliver cellularservices to the mass market, to improve quality, to reduce peak capacityand, therefore, the capital requirements on system networks, or toincrease overall capacity utilization.

[0050] Other business approaches had been tried but these too failed todeliver the benefits of the present invention. For example, in about1995, PHS introduced in the Japanese market a strategy of pricing belowother cellular providers and close to wireline providers. PHS wassuccessful in so-called “telepoint” applications in which subscriberdensity is very high. William Webb, UNDERSTANDING CELLULAR RADIO (1998),at 183-190, which is incorporated herein by reference. The businessmodel was well-received by consumers and the service enjoyed stronginitial market penetration. The user demographics shifted rapidly fromtraditional business users to a mass market demographic user profile.Nonetheless, the PHS business model failed to deliver the uniqueadvantages of the present invention for several reasons, includingwithout limitation: unpredictability of the monthly costs; poor servicequality do to inferior technology; and churn.

[0051] Users employed the service for brief periods, then abandoned it.This churn left the system operators with high initial costs of securingnew customers and an insufficient time of retention of those customersto recover the acquisition cost through monthly service charges. Thisexperience merely reinforced the conventional wisdom that the dominantbusiness model, relatively high-priced cellular service through anetwork designed based upon coverage and designed to a high peakcapacity usage, was the appropriate business model for wirelesscommunications services.

[0052] Cellular networks have been deployed that incorporate some of thehigh capacity features of the present invention, but these network havebeen operated on the business model of prior known systems. For example,networks have been deployed in both Korea (Seoul) and Hong Kong thatemploy additional carrier signals to boost system capacity. Prior knowncellular systems typically employed a single carrier signal. Addingadditional carriers substantially increases system capacity.

[0053] These two high capacity Asian cellular systems, are heavy usageCDMA systems designed around a convention cellular usage model, of thetype known prior to the present invention. For example, the Seoul, Koreasystem features up to 6 carriers, on a CDMA network, using a substantialnumber of frequencies. The system is operated by SK Telecom and servesthe metropolitan area in Seoul. Hong Kong had a AMPS and TDMA network.Hong Kong deployed the first CDMA network system. It, too, featuresnumerous carriers and extremely high call capacity, due to the densityof downtown Hong Kong.

[0054] Both of these known, high capacity systems, however, employed aconventional business model, operations method, network and systemsapproach. They are designed and operated based upon coverage, ratherthan capacity. They do not employ the “wireline call model” of thepresent invention. They do not include the business method, operations,network, and/or systems improvements to address capacity, namely,providing service primarily where people live, work, and play. Althoughthese high-capacity networks in Seoul and Hong Kong feature dmultiplecarriers and substantially more capacity than prior known systems, theydid not include other of the unique features of the present invention.They are both “metered capacity” models, in which usage is billed basedupon the number of minutes used.

[0055] As a result of the extensive experience of the cellular industry,by early 1998, the generally accepted business model for operating awireless communications network involved: primary business users,numerous additional features for which surcharges applied, relativelyhigh ARPU, and widespread system coverage to secure additional revenuesfrom roamers passing through the system and paying higher roamingsurcharge rates.

[0056] Neil J. Boucher, in THE CELLULAR RADIO HANDBOOK (1990), which isincorporated herein by reference, discloses a typical demand curve for awireless system of the type known prior to the present invention. Thatcurve is depicted in FIG. 4. Such a prior known wireless system has twopeak times during the day. These occur at approximately 11 am and 7 pm,as illustrated in FIG. 4. In addition, the changes in demand from peaktime to low-usage time are significantly high. In contrast, the demandcurve for a wireless system according to the present invention, as shownin FIG. 5, is relatively flat and does not have the peaks andsignificant deltas in demand that occur in prior known wireless systems.FIG. 5 illustrates a typical busy hour utilization of a preferredembodiment of a wireless system according to the present invention.

[0057] In 1997, the present inventors began development of a newbusiness model for delivering Wireless communications services. Thepresent inventors developed a new method, operations, network, andsystem for delivering wireless communications services. This inventionoffered low cost cellular service to a more numerous mass market, ratherthan merely to a limited submarket of relatively price insensitivebusiness users.

[0058] Prior known wireless communications operators typically targetedonly high-end market segments, namely, heavy users and business users,and not the consumer or mass markets. ARPU values in the consumer ($25to 40) and mass market ($15 to 25) were generally understood to besubstantially lower than ARPUs' for business users ($40 to 75) and heavyusers (>$75). There was no motivation to target lower ARPU customersprior to the present invention. Addressing these consumer and massmarkets through prior business models would result in higher capital andcustomer acquisition costs, lower revenues, and lower profitability. Norwas it obvious that increasing market penetration in these consumer andmass market segments would increase revenues. Particularly in view ofthe high initial cost of acquisition and high operating costs of mostcellular systems, customers at the low ARPU levels associated with theconsumer and mass markets would have to be retained for long periods oftime. Thus, the prior known business methods, operations, networks, andsystems failed to address the unique problems addressed and resolved bythe present invention.

[0059] The present inventors conducted extensive studies of the demandfor cellular services. Based upon these investigations, the presentinventors discovered that there were several basic flaws and omissionsin the prior known business methods for delivering cellular services.Specifically, rather than being an unprofitable customer segment, themass market and consumer markets could be viable, provided sufficientcosts were driven out of the cellular operation.

[0060] This had not been done by prior known business methods. Thepresent inventors discovered that, contrary to the conventional view, asunit price and monthly service fees fell, consumer interest (in the massmarket and consumer market segments) increased to relatively high levelsof penetration that would support a viable business model.

[0061] In order to be profitable, however, additional costs must bedriven out of the traditional method of delivering cellular services.Specifically, the high operating costs, high capital costs, andrelatively low capacity utilization characteristic of prior knownsystems each impeded the efficiencies necessary to serve theseadditional market segments. As the market had already demonstrated, therequisite degree of cost savings was not possible using the prior knownmethods of rendering cellular services.

[0062] The present inventors identified several critical factors inachieving the cost savings necessary effectively to expand cellularservice to these additional market segments: improved capacityutilization and reduced peak system capacity; targeted area coverage;improved capital utilization; channels; reduced interconnect costs;improved back office operating efficiency; and improved networkoperating efficiency.

[0063] Particularly in view of a number of recent technical advances,capacity is highly dependent on the network technology employed. Webb,at 101-149, which is incorporated herein by reference. Several advancesin recent years have enabled operators to enhance capacity from existingbandwidth and use bandwidth more efficiently, although other operatorspreferred legacy technology and the associated capacities. The presentinventors believe that CDMA technology offers certain capacityadvantages relative to rival technologies. Specifically, through the useof CDMA technology, the capacity of the system could be increased by afactor of two in terms of calls per sector, relative to rival technicalformats. Similarly, the data rate can be increased from about 8 k toover 100 k, with projections of up to 2.4 Mega bits per sector. Thepresent inventors anticipate continued advances in network capacity.

[0064] Coverage is one of the primary design criteria for any cellularnetwork. Prior known networks are designed to provide extensive coveragefor the basic service area, as well as for the surrounding area andmajor transportation arteries. Although the cost of this additionalcoverage is substantial, revenues from roamers entering the system andusing this extended coverage area typically defray the added cost andgenerate substantial additional revenues in prior known cellularsystems. The capacity and signal strength are optimized for coverage,and in particular, in-vehicle use. In addition, the capacity of priorknown systems is typically built out to the peak demand of the system,throughout the service area. Although this results in higher capitalcost, that capital cost is typically recovered through roaming charges.

[0065] The present inventors, however, have designed the system coveragebased upon extensive market studies identifying patterns of living,working, playing, shopping, and schooling (“live, work, and play”) ofthe primary service area. The system is designed to provide strongsignal coverage, tailored to the usage pattern in each cell in theprimary service area. The system of the present invention is preferablydesigned for in-building, as opposed to merely in-vehicle use. Nocapacity is built into an extended service area or arteries. Systemcoverage is designed specifically for local service, without regard toroaming. Nonetheless, major interconnection arteries are covered by theservice of the present invention.

[0066] This provides two benefits. First, the coverage area of thepresent invention is typically more limited than coverage of systems ofthe type known prior to the present invention. FIGS. 8 and 9 are mapsdepicting coverage patterns of a system prior to implementation of asystem according to the present invention and after such implementation,respectively.

[0067] Second, rather than building peak system capacity throughout thecoverage area, the present invention tailors capacity within each cellto expected local traffic patterns. This allows a reduction in systemcost. Fewer cells are built and the capacity of the cells that are builtis increased relative to prior known systems. The present inventorsbelieve that this approach enables the system to achieve effectivecoverage for the service area with only about 80% of the number of cellsites of prior known systems, when sites that are related primarily tohighway and roaming coverage are removed.

[0068] Capital utilization is also enhanced by the present invention asthe reduced coverage sites are provided and the cost of capacity isreduced through the use of CDMA technology. In a preferred embodiment ofthe present invention, the capital expenditure per subscriber isreduced, from 12 to 25% of the capital expenditure per subscriber inyear 1 relative to prior known systems, to 25 to 50% of the cumulativecapital expenditure per subscriber in year 10. Moreover, due to thehigher capacity utilization of the present invention, the differencebetween the present invention and prior known systems in terms ofcumulative capital expenditure per unit of usage is even moresubstantial. The present inventors estimate that cumulative capitalexpenditure per unit of usage (Erlang) in year 1 preferably is onlyabout 5% to 15% of prior known methods. In year 10, it is as low as onehalf.

[0069] Based upon these factors, the break even point for a network ofthe present invention is substantially sooner than for a network of thetype known prior to the present invention. In the preferred embodimentof the present invention, the break even point is 12 months, as shown inFIG. 19. The calculations illustrated in FIG. 19 are based upon the“Typical PCS Company” model, as disclosed by the firm Donaldson, Lufkin& Jenrette in THE GLOBAL WIRELESS COMMUNICATIONS INDUSTRY (1999), whichis incorporated herein by reference. The present invention may achievebreak even at the end of year one, relative to year three in systems ofthe type known prior to the present invention.

[0070] Channel costs of marketing cellular services comprise one of themost significant cost elements for a cellular network. Cellular servicesof the type known prior to the present invention are typically highlydiversified and segmented, featuring highly complex pricing plans andusage models. The selling activity requires highly trained customerservice representatives to explain the various phones available, theirfeatures, and the relative benefits and disadvantages of the variousservice plans relative to a particular customers usage pattern. All ofthis adds substantial selling cost to a wireless operator. The presentinvention, in contrast, features one or two phones, a simple plan, andhigh volume usage. Rather than selling through specialized channels, thepresent invention may sell through mass merchandise outlets. Advertisingand marketing efforts are oriented to the point-of-sale and limit salespersonnel involvement. Each of these features further reduces theselling expense associated with the present invention.

[0071] Interconnect costs represent a significant cost factor to thesystem operator in systems of the type known prior to the presentinvention. Specifically, when users are charged by the minute, they tendto leave their phones off when they are not placing a call in order toavoid receiving charges for unwanted calls, or they avoid giving callerstheir phone number. This results in the system operator generating farmore outgoing calls than are received within the system. In a typicalcellular system of the type known prior to the present invention, thebalance between calls generated by the user and calls received isapproximately 75% outgoing; 25% incoming. This means that there is agreater chance of the user making a call to a number outside the servicearea than of receiving one from outside the service area. Interconnectcharges, therefore, tend in the direction of the system operator havingto pay to operators of other systems fees for outward bound calls madefrom users within the system.

[0072] The present invention, however, seeks to reduce substantiallyinterconnect charges by modifying the user's calling patterns. As theuser enjoys unlimited use, without any additional charges for thathigher use, the user tends to leave their phone on, even when they arenot making a call. The present inventors have observed that usagepatterns tend to be more balanced, in the range of 60/40 (20 pointdifference), in contrast to the 75/25 (50 point difference) balanceobserved in prior known systems. The present inventors believe that,over periods of several years, usage would migrate toward a balance of55/45 or 50/50 in a preferred embodiment of the present invention. Atthat point, the interconnect charges will offset one another,eliminating this cost from the system.

[0073] Enhanced network operating efficiencies are another feature ofthe present invention providing a benefit relative to prior knownsystems. These benefits may include: reduced direct labor costs; reducedlease costs as a result of fewer, higher capacity cell sites; simplifiedoperations; and improved back office operating efficiencies.

[0074] The present invention allows the operator to reduce the totalnumber of cells in the system. This employs less expensive capitalequipment and improves the efficiency of maintenance and repairactivities, as both fewer cell are used and distance for traveling tothe outlying cells that have been eliminated is reduced. As fewer cellsare built into the system, lease costs are reduced for cell towers andcell sites. The cost of the fixed network and facilities are reducedrelative to systems of the type known prior to the present invention.

[0075] The operating model of the present invention is preferably basedupon monthly, bill-in-advance, pay-in-advance service, which isdifferent then the pay-in-arrears system generally used forcredit-worthy business customers or the prepaid system typically usedfor consumers. The operator, therefore, is not dependent on variableusage patterns, which result in fluctuating revenues. Revenues are basedupon service and not the specific features employed from call to call.The revenue stream is leveled, offering the operator greaterpredictability and certainty.

[0076] Back office expenses are reduced dramatically, relative to priorknown systems. One of the largest operating cost elements in prior knownsystems is customer service to handle billing inquiries. A typicalcellular billing statement itemizes every call and details the variousfeatures (roaming, call waiting, etc.) accessed. This level of detailtypically generates billing questions and challenges, all of which mustbe handled in a person-to-person discussion with the customer servicedepartment. The cost of handling this call volume can be one of thelargest single cost elements in the back office operation of a typicalprior known system. The present intention, however, eliminates theseexpenses. Credit checks are unnecessary. Account receivable balances arenot permitted to accrue. As service is flat rate and pre-paid, there areno charges based upon the number of calls, length of calls, and featuresaccessed. Itemized billing statements may be eliminated and replaced bysimple flat rate bills. Accounts receivable and collection activitiesare eliminated, further simplifying back office operations.

[0077] Further, the present invention substantially reducesactivation-related costs. The phones of the present invention are soldpreactivated. Each phone already has loaded into it a unique cellularnumber upon leaving the factory. This reduces the effort required toactivate. Rather than supplying skilled customer service personnel toassist in activation, activation may be conducted by the customer uponleaving the store. This Over the Air (Activation) SubscriberProvisioning (OTASP) feature of the present invention substantiallyreduces operations costs, and simplifies the customer's role inactivating the phone. OTASP results in substantial cost savings to thesystem operator.

[0078] None of these improvements were obvious at the time the inventionwas made. In contrast, the incumbent business model has been and remainsbased upon minutes of usage, the time of day, and features accessed.Absent substantial elimination of costs from the existing model, theshift to lower ARPU users is not desired by system operators.

[0079] By combining these features in various combinations, to expandcapacity utilization and reduce systems, capital, and operating costs,the advantages of the present invention are fully achieved.

[0080] In his recent book, Webb presents a simple and accessible primeron wireless communications systems. William Webb, UNDERSTANDING CELLULARRADIO, Artech House, Inc. (1998), which is incorporated herein byreference. Webb describes a number of generally accepted network designfactors prior to the present invention. Webb notes that prior knownsystems provided only enough capacity for the expected number ofsubscribers; if needed, additional capacity would be built into thesystem at a later date. Webb confirms, that prior to the presentinvention: “[t]o minimize system cost and roll-out time, operators needto insure that they use the fewest number of cells cites possible toprovide the required coverage. The problems would be familiar to thecellular operators who expend considerable time and effort planningtheir networks to use the minimum number of base stations for therequired coverage.” Id. at 95. Webb further teaches that in cases wherethere was not sufficient capacity in the network, “the cells had to bemade smaller.” Id. at 98. Webb amplifies that “microcells are the onlyway to improve capacity in city centers.” Id. at 99.

[0081] Yet, the present inventors have adopted a different approach tonetwork design. By designing for capacity, rather than coverage, thepresent inventors have been able to further reduce the number of cells,without deploying substantial numbers of microcells. The presentinventors have found that, by aggressively managing the cost of theirwireless communications services and deploying appropriate technology,preferably CDMA technology, they have been able to increase capacityutilization of the network, dramatically reduce their operating costs,pass substantial savings on to the consumer (who enjoys not only greateraccess to their wireless communications service, but does so at a lowerprice), and enjoy ample margin to run the business profitably on asustaining basis.

OBJECTS OF THE INVENTION

[0082] It is therefore an object of the present invention to provide alow cost wireless communications service.

[0083] Another object of the present invention is to provide a low costwireless communications service that is targeted to market segmentsbeyond the traditional heavy and business users.

[0084] A further object of the present invention is to provide a lowcost wireless communications service that is attractive to mass marketusers.

[0085] An additional object of the present invention is to provide a lowcost wireless communications service that is based upon flat ratepricing.

[0086] Yet another object of the present invention is to providewireless communications services at a high level of capacity utilizationof the cellular network components, relative to prior known systems andnetworks.

[0087] It is an object of the present invention to provide a highquality wireless communications service.

[0088] Another object of the present invention is to provide a wirelesscommunications service at a low flat rate monthly charge.

[0089] A further object of the present invention is to provide awireless communications service that enables higher capacity utilizationof the wireless network.

[0090] An additional object of the present invention is to provide awireless communications service in a fashion that reduces peak capacityutilization relative to prior known networks.

[0091] Yet another object of the present invention is to providewireless communications services that are preactivated.

[0092] Another object of the present invention is to provide wirelesscommunications services while substantially reducing the customerservice requirements of prior known wireless networks and systems.

[0093] It is an object of the present invention to adapt prior knownwireless communications services to improve capacity utilization of thenetwork or system.

[0094] An additional object of the present invention is to reduce peakcalling capacity.

[0095] Another object of the present invention is to adapt the wirelesscommunications services to a targeted coverage area.

[0096] Yet another object of the present invention is to achieveimproved capital utilization from the wireless communications networkand system.

[0097] A further object of the present invention is to broaden thechannels through which wireless communications services are marketed.

[0098] It is another object of the present invention to extend thechannels for marketing wireless communications services to massmerchandisers.

[0099] An additional object of the present invention to reduce system ornetwork interconnect costs to other system operators.

[0100] Another object of the present invention is to improve back officeefficiency.

[0101] Yet another object of the present invention is to reduce backoffice operating costs.

[0102] A further object of the present invention is to improve networkoperating efficiency.

[0103] It is an object of the present invention to reduce networkoperating costs.

[0104] It is an object of the present invention to bundle long distanceservice with local wireless communications services.

[0105] Another object of the present invention is to combine freeunlimited long distance service with local wireless communicationsservices.

[0106] An additional object of the present invention is to offer avariety of enhanced features with wireless communication services.

[0107] A further object of the present invention is to provide voicemail.

[0108] Yet another object of the present invention is to provide callwaiting.

[0109] It is an object of the preset invention to provide paging.

[0110] Another object of the present invention is to provide dataservices.

[0111] An additional object of the present invention is to provideInternet services.

[0112] A further object of the present invention is to provide tailoredinformation services adapted to the individual user.

[0113] Yet another object of the present invention is to modelsubscriber behavior and adapt the services delivered to the user basedon heuristic studies of the subscriber's preferences and behaviors.

[0114] It is an object of the present invention to provide positionlocation information.

[0115] Another object of the present invention is to provide advertisingto users or subscribers.

[0116] An additional object of the present invention is to facilitatemCommerce.

[0117] A further object of the present invention is to safeguard users'and subscribers' privacy.

[0118] Additional objects and advantages of the invention are set forth,in part, in the description which follows and, in part, will be obviousfrom the description or may be learned by practice of the invention. Theobjects and advantages of the invention will be realized in detail bymeans of the instrumentalities and combinations particularly pointed outin the appended claims.

BRIEF SUMMARY OF THE INVENTION

[0119] As illustrated in the accompanying diagrams and disclosed in theaccompanying claims, the invention is an improved wirelesscommunications service, business method, operation method, and networkand system for delivering the same.

[0120] In one embodiment, the present invention is an improved businessmethod for a wireless communication system, comprising, either alone orin various combinations, the steps of:

[0121] Flat rate billing, not based on individual minutes of use (MOU)or number of individual calls;

[0122] Unlimited use, not packaged based on individual minutes of use ornumber of individual calls;

[0123] Providing service where users “live, work, and play”;

[0124] Achieving wireline phone functionality, as a replacement for thestandard wire-line phone (>800 MOU/month);

[0125] Mapping customer demand geographically, by where users “live,work, and play” and by demographics of key market segments;

[0126] Providing service only in a pre-determined area (no roaming),along with the potential for exchange services with other markets;

[0127] Bill-in-advance;

[0128] Pay-in-advance;

[0129] No service contract required;

[0130] Limited hand set and features;

[0131] No detailed billing;

[0132] Operating expense at or below about 85% of the flat monthly fee;

[0133] ARPU equal to or below about $40.00 per month; and

[0134] Deploying “islands” of service.

[0135] In an alternative embodiment, the present invention is animproved operations and selling method, comprising, either alone or invarious combinations, the steps of:

[0136] Flat Rate billing;

[0137] Bill-in-Advance;

[0138] Pay in Advance;

[0139] No detail call record;

[0140] Service in predetermined calling area, with no roaming;

[0141] Pre-paid long distance (“gas tank”);

[0142] Simple service offering;

[0143] Centralized systems which enable aggressive and effective costreduction;

[0144] Cost-driven (vs. revenue-driven) operational model;

[0145] Reduced churn rate to less than 4% after three months or more(increased stickiness);

[0146] Operating expense per subscriber per month less than or equal toabout $26;

[0147] Cash cost per unit less than or equal to about $20;

[0148] Acquisition costs per subscriber less than or equal to about$230;

[0149] ARPU less than $40.00 per month;

[0150] Margin greater than or equal to about 15%.

[0151] Single-rate plan;

[0152] Achieving better balance in the mix of incoming and outgoingcalls to reduce interconnect charges;

[0153] Reducing or eliminating collection and bad debt expense;

[0154] Reduced sales cycle time;

[0155] Phone-in-a-box, containing all the information you need on theoutside of the package;

[0156] Pre-programmed phones;

[0157] Limited handset selection;

[0158] Single-band phones;

[0159] Customer Activation

[0160] Wholesale discount only—no commissions or residuals;

[0161] Limited service features;

[0162] Familiar features requiring no training;

[0163] Inventory kept with distributor;

[0164] Phone bundled with service;

[0165] Simplified sales process;

[0166] Reduced Cost per Gross Add; and

[0167] Separate branding of an “all-you-can-eat” service (flatrate/unlimited service).

[0168] In a preferred embodiment, the present invention is an improvednetwork and system for delivering wireless communications services,comprising, either alone or in various combinations, the steps of:

[0169] Generating Erlangs per subscriber per square mile greater than orequal to about 0.03E;

[0170] In building coverage greater than or equal to about 12 db;

[0171] Tailoring the network to capacity;

[0172] Targeting cell site deployment;

[0173] Covered Population per site greater than 4,000;

[0174] Second Carrier frequency, upon or within about three months afterlaunch;

[0175] Frame error rate less than about 2%; and

[0176] Enhanced capacity network offering unlimited use (>800 minutesper month).

[0177] It will be apparent to persons of ordinary skill in the art thatvarious modifications and variations any be made to the business method,operations method, network and/or system of the present invention,without departing from the scope or spirit of the invention. Forexample, although service is preferably unlimited by number of minutesof use or number of calls, service may also be bundled in predeterminedamounts, such as 400, 600, 800, or 1,000 minutes a month, or any otherlevel of minutes per time period. Margin may be maintained at any levelthat supports a sustainable business.

[0178] Prior known bundled minute of use service offerings have rangedup to several hundred dollars amonths (ARPU) for 2,000 or 3,000 minutesof use. ARPU values of the present invention, therefore, may be set atany level sufficient to distinguish prior service offerings, forexample, at $30, $35, $40, $45, or $50 per month. Similarly operatingexpense per subscriber may be maintained at any sustainable level belowARPU, such as $26 at an ARPU of $30, or any comparable level on the costcontinuum. Similarly, the time period of the service offering is notcritical and the present inventors intend to cover offerings atcomparable rates (ARPU per month or minutes of use per month) that maybe offered for shorter (hours, days, or weeks) or longer (multiplemonth, quarter, year or longer) periods of time.

[0179] Churn may be reduced below levels experienced by unlimitedservice offerings such as PHS, at any time after a subscriber has beenadded, whether at 3, 4, or 12 months, or at any other time. Acquisitioncosts per subscriber may be less than or equal to about $500 or anylower level, such as $230.

[0180] The level of Erlangs per subscriber, per square mile, may bemaintained at any level greater than or equal to about 0.03E of priorknown systems, such as 0.04, 0.05, 0.055, or higher. In-buildingcoverage may be maintained at greater than or equal to about 12 db, 15db, or 18 db, or any other level that distinguishes the in-buildingcoverage of the present invention from prior known systems. CoveredPopulation per Site may be greater than or equal to about, 4,000, 6,000,8,000, 10,000, or any level along a continuum greater than 4,000.Similarly, the average number of minutes of use per month may bemaintained at any level grater than about 400, such as 600, 800, 1,000,or any other level along that continuum.

[0181] The Frame Error Rate may be relaxed from 1%, to 2%, or 3%, or anyother level that continues to provide effective service. The equipmentused is not critical, provided that it provides the requisite capacity,quality, and reliability. Thus, it is intended that the presentinvention cover the modifications and variations of the inventionprovided they come within the scope of the appended claims and theirequivalents.

[0182] It is to be understood that both the foregoing generaldescription and the following detailed description are exemplary andexplanatory only, and are not restrictive of the invention as claimed.The accompanying drawings, which are incorporated herein by reference,and constitute a part of the specification, illustrate certainembodiments of the invention, and together with the detaileddescription, serve to explain the principles of the present invention.

BRIEF DESCRIPTION OF THE DRAWINGS

[0183]FIG. 1 is a schematic diagram showing the relationship of acellular network of the type known prior to the present invention to thepublic switched telephone network.

[0184]FIG. 2 is a schematic diagram showing the interrelationship of theprincipal components of a cellular system adapted for voicecommunications of the type known prior to the present invention.

[0185]FIG. 3 is a schematic diagram showing the interrelationship of thevarious components of a cellular system adapted for both voice and dataservices, of the type known prior to the present invention.

[0186]FIG. 4 is a graph illustrating a typical demand curve for awireless system of the type known prior to the present invention.

[0187]FIG. 5 is a graph illustrating the busy hour utilization of awireless system of the type known prior to the present invention.

[0188]FIG. 6 is a graph depicting the predicted change in System RFBlocking Rate upon conversion of a system of the according to thepresent invention.

[0189]FIG. 7 is a graph of estimated demand vs. capacity upon conversionto a system according to the present invention.

[0190]FIG. 8 is a map depicting system coverage of a cellular systemprior to implementation of a system according to the present invention.

[0191]FIG. 9 is a map depicting system coverage of a cellular systemaccording to the present invention.

[0192]FIG. 10a is a graph depicting actual network performance of both asystem known prior to the present invention and a system according tothe present invention with respect to combined dropped and blockedcalls.

[0193]FIG. 10b is a graph depicting actual network performance of both asystem known prior to the present invention and a system according tothe present invention with respect to dropped call percentage.

[0194]FIG. 10c is a graph depicting actual network performance of both asystem known prior to the present invention and a system according tothe present invention with respect to blocked call percentage.

[0195]FIG. 11 is a graph of the usage distribution for the teen segment,as contemplated by the present inventors.

[0196]FIG. 12 is a graph of the usage distribution for the collegestudent segment, as contemplated by the present inventors.

[0197]FIG. 13 is a graph of the usage distribution for the secondaryincome spouse segment, as contemplated by the present inventors.

[0198]FIG. 14 is a graph of the usage distribution for the new wageearner segment, as contemplated -by the present inventors.

[0199]FIG. 15 is a graph of the usage distribution for the blue collarsegment, as contemplated by the present inventors.

[0200]FIG. 16 is a graph of the usage distribution for all other users,as contemplated by the present inventors.

[0201]FIG. 17 is a graph of the usage distribution for all userscomparing predicted data with the actual data.

[0202]FIG. 18 is a slide illustrating the break even point for animplementation of a system according to the present invention.

[0203]FIG. 19 is a Table comparing the expected relative CapitalUtilization requirements between GSM and CDMA systems of the types knownprior to the present invention and the present invention.

[0204]FIG. 20a is a chart illustrating the re-engineering of the coststructure of a wireless system according to the present invention.

[0205]FIG. 20b is a chart illustrating the re-engineering of the coststructure of a wireless system according to the present invention.

[0206]FIG. 21 is a flowchart depicting the process flow through the backoffice of a preferred embodiment of the present invention.

[0207]FIG. 22 is a flowchart depicting the process of set up andactivation of a preferred embodiment of the present invention.

[0208]FIG. 23 depicts a process for adjusting the financial aspects ofan account, for a preferred embodiment of the present invention.

[0209]FIG. 24 is a flowchart depicting how to add a phone to an accountin a preferred embodiment of the present invention.

[0210]FIG. 25 is a flowchart depicting how to change general informationon an existing account in a preferred embodiment of the presentinvention.

[0211]FIG. 26 is a flowchart depicting a process for changing a phonenumber and adjusting acceptance of optional features in a preferredembodiment of the present invention.

[0212]FIG. 27 is a flowchart depicting a process for changing creditcard information in a preferred embodiment of the present invention.

[0213]FIG. 28 is a flowchart depicting a process for changing recurringcredit card payment information in a preferred embodiment of the presentinvention.

[0214]FIG. 29 is a flowchart depicting a process for transferring aphone in a preferred embodiment of the present invention.

[0215]FIG. 30 is a flowchart depicting a process of “hotlining” and theprocess of restoring hotlined service in a preferred embodiment of thepresent invention.

[0216]FIG. 31 is a flowchart depicting a process for removing a phonefrom a multi-phone account in a preferred embodiment of the presentinvention.

[0217]FIG. 32 is a flowchart depicting a process for disconnecting aphone in a preferred embodiment of the present invention.

[0218]FIG. 33 is a flowchart depicting a process for dealing withfrequently asked questions in a call center of a preferred embodiment ofthe present invention.

[0219]FIG. 34 is a flowchart depicting the steps involved in handlingbilling questions in a preferred embodiment of the present invention.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

[0220] Reference will now be made in detail to a preferred embodiment ofthe improved business method of the present invention, an example ofwhich is illustrated in the accompanying drawings. First, the basicconcept of the service offering of the present invention will bediscussed in broad, functional terms. Next, examples will be given ofthe operation of the invention with respect to various embodiments,namely: a business method, the operations method, and the network andsystem of the present invention, identifying preferred elements of eachembodiment. Additional detail will be provided with respect to theoperations method of the present invention with particular attention toa preferred embodiment of the customer service functions of the backoffice. Third, the conversion of a system of the type known prior to thepresent invention to incorporate features of the present invention willbe discussed.

Basic Concept of the Service Offering

[0221] The present invention comprises a realigned service offering forwireless communications services. One objective of the present inventionis to develop a high-value, fixed-price, wireless communication serviceoffering that features high voice quality, is directed to the massmarket, and succeeds in realigning the service offering to the lowestcost position. Specifically, the present inventors have developed a newbusiness model that is targeted at achieving high subscriberpenetration, namely greater than 10 or 20 million nationwide. This levelof penetration, however, cannot readily be achieved by focusing only onhigh-end business users.

[0222] One component of the present invention, therefore, is to developan “every day” wireless focus by attracting a mass market subscriberbase. The business method of the present invention relies upon theunique combination of technology, operations, and network engineering toachieve the objects of the invention. In a preferred embodiment, theinvention employs CDMAone technology in an optimal manner, to gainmaximum competitive advantage from the technical features and advantagesthat CDMA offers. CDMA technology greatly enhances the capacity of thenetwork. By providing a flat rate unlimited access offering, the presentinventors are able to exploit the inherent technical advantages of CDMAto achieve higher capacity utilization than was typical of systems ofthe type known prior to the present invention. This provides a vehiclefor wireless mass communication.

[0223] The networks of the present invention may be deployed as“islands”—isolated from sister systems by a geographic area whereservice is not available. The “islands” of the present invention may bedetermined based upon market studies. By deploying the network on an“island” basis, the present inventors are able to exploit the latestdevelopments of the technology, building an incremental installed basein each new service area in which they offer their services. This allowsthe present inventors to capitalize on future technical gains, on alocal, regional, and/or national basis, and to improve isolated islandswithout widespread disruption of a larger network.

[0224] The present inventors anticipate that the business method,operations method, and network of the present invention will evolve astheir service offering matures. Initially, local and toll calling, voicemail, and long distance service (to be provided by others) are offeredin a local metropolitan area. Additional features may be provided, suchas call waiting, call forwarding, call barring, and call conferencing.In addition, data products may be available in the form of: information,sports, stocks, weather, and any other information of interest. Thiscould be based on Internet-provided content or content from any othersource that is housed on or linked into the wireless communicationnetwork. Advertising feeds could be supplied over Short Message Service(SMS) or other methods.

[0225] In the next phase of evolution of the invention, the presentinventors anticipate internalizing long distance service within theproduct offering and providing a unified message product on a regionalbasis. One of the features that enables the present inventors to holdcosts down is the lack of “roaming.” Nonetheless, exchange servicescould be offered between networks of the present invention on a regionalor national basis.

[0226] As was the case with the initial stage, call waiting, callforwarding, call barring, and call conferencing may all be offered atthis stage. In addition to basic data information (information, stocks,sports, weather, etc.), the present inventors anticipate that enhancedinformation download services would be provided at this next stage. Inaddition to providing advertising feeds over Short Message Service(SMS), advertising feeds could be provided over voice, or alternativetechnologies. In addition, greater customization could be built into thesubscriber unit, providing the customer additional options.

[0227] The present inventors anticipate that in the third stage ofevolution of the invention, long distance service would be provided overIP protocols, across the footprint of those networks deploying theinvention. This could occur on a national basis. All of the callwaiting, call forwarding, call barring, call conferencing, as well asadditional features may be included. Further, mobile data productofferings may be developed to enhance the information download serviceand basic information services. Advertising may continue to be provided,as appropriate. In addition, as the path of evolution progresses, thepresent inventors anticipate handset exchanges and upgrade programswould be implemented in order to allow consumers to continue to exploitthe most advanced technology and service offering.

[0228] The realigned service offering of the present invention featuresa number of discrete components that enhance its attractiveness to thecustomer and its effectiveness as a network, as a method of operation,and as a business model. These include, without limitation:

[0229] Designing the network for capacity, rather than merely geographiccoverage.

[0230] Providing coverage primarily in the areas where the userssubstantially live, work, play, shop, go to school, and undertake mostof their day-to-day activities, and principal small corridors betweenthem.

[0231] Achieving efficient capital utilization of the network.

[0232] Pursuing an enhanced channel strategy in order to reduce the costof selling and delivering the services to the lowest reasonable point.

[0233] Managing variable interconnect costs to eliminate the net outflowof interconnect charges that might otherwise occur.

[0234] Improving back office operating efficiency.

[0235] Enhancing network operating efficiency.

[0236] Increased capacity is an important function of many of theembodiments of the present invention. Table 4 provides someapproximations of the capacity, in terms of simultaneous calls persector/carrier for various telephony applications. TABLE 4 SimultaneousCalls Per Sector Carrier Capacity By Application Application PresentFuture Mobile 15 18 Mixed 19-20 23-24 Fixed 24 28 Present Invention 1919-28

[0237] As can be seen from Table 4, the present invention provides inthe setting of a wireless communication network some of the capacityadvantages that are available today only through a wireline or WirelessLocal Loop (WILL) telephony system and would be available to otherwireless carriers only at some date in the future.

[0238] The present inventors believe that the use of the CDMA airinterface provides distinct advantages in achieving the preferredcapacities of the present invention. The air interface has evolved fromthe IS-95A Standard (19 calls per sector) in 1998 to the IS-95B Standard(22 calls per sector) to the current IS-95C Standard (39 calls persector). Present inventors anticipate further evolution of the ISStandard to implement additional improvements. All of these standardsare backward compatible. In addition, while the data rate availableunder IS-95A was only 8K, IS-95B offered 64-115K. Is anticipated furtherimprovements will offer substantially higher rates.

[0239] In order to optimize the coverage of the network of the presentinvention, the design objective in a preferred embodiments of thepresent invention is to cover a greater metropolitan area with a strongsignal and provide a capacity advantage over systems to the type knownprior to the present invention. The signal is designed to achieveeffective levels of in-building coverage, rather than in-vehiclecoverage typical of prior known systems. The coverage objective is tocover substantially those areas where the lifestyle of the user leadsthem to work, live, play, shop, or attend school. This is in distinctcontrast to systems to the type known prior to the present invention, inwhich the system was designed for geographic coverage to enhance serviceto mobile users who travel through the area. Nonetheless, the presentinvention also covers, in preferred embodiments, the majorinterconnection arteries within the geographic area.

[0240] In a preferred embodiment of the present invention, this resultsin fewer cell sites being required to provide the requisite level ofservice. For example, the present inventors anticipate that for anexample market, such as the San Diego market, substantial reductions inthe number of cells could be achieved, while also achieving the goals ofthe present invention. Table 5 summarizes this effect: TABLE 5 San DiegoMarketplace The Present Air Touch Sprint PBMS Invention Anticipated 181c. 190 c. 280 155 Number of Cells

[0241] As a result of the business method, operational methods, andnetwork of the present invention, the present inventors anticipate thatoverall capital expenditures, both on a per subscriber and on a perErlang basis, can be reduced dramatically. FIG. 19 provides informationregarding the anticipated capital expenditure per subscriber. (Alldollar values used in this application are in approximately 2000dollars. The present inventors expressly intended that these valueswould be adjusted by the user to accommodate changes in the time valueof these amounts and/or improvements in technology that may alter therelative values of various elements of the present invention.)

[0242] As can be seen from FIG. 19, capital expenditure is high in theearly years and falls off as each of the systems mature. The height ofthe initial peak for systems such as the Power Tel (GSM) and Sprint(CDMA) systems depicted in FIG. 19 are higher in the earlier years thanthat of the present invention. The commutative capital expenditure persubscriber for each system is anticipated to be lower in the succeedingyears as the systems mature. Yet, the present invention retains adistinct advantage. The same pattern appears with respect to CapitalExpenditure per Erlang. The Power Tel and Sprint systems aresubstantially higher in early years from system launch than is thepresent invention. Similarly, the present invention may be able tosecure savings of up to two thirds in later years, relative to thecommutative Capital Expenditure per Erlang of these prior known systems.

[0243] Channel costs are reduced in a preferred embodiment of thepresent invention in a number of ways. The product offering ispreferably simple, namely, one phone featuring a limited number of rateplans. Sales are preferably oriented to mass merchandising and massretail outlets, rather than dedicated specialty stores that requirehigher investment in real estate and operating expense. Advertising isdirected at mass channels. Similarly, marketing efforts are directed inareas where traffic generation is high, such as mass merchandisingretailers. Limiting the involvement of sales personnel substantiallyreduces selling expenses. By packaging the “phone-in-a-box” with all ofthe material marketing information contained on the outside of thepackaging, most of the consumers' questions can be answered by a reviewof the product offering. The first month's service is preferablyincluded. No extensive and lengthy explanations are required by aspecialty sales force, further reducing selling expense.

[0244] In contrast, most operators of wireless communications systems ofthe type known prior to the present invention offer the consumer abewildering array of options, which also serves to increase theoperator's direct selling expense. For example, Cingular Wireless,formerly Bell South, offers several series of wireless calling plans atthe “home,” “region,” and “nation” level. At the time of filing of thisapplication, for example, Cingular offered nine different home callingplans, six different region calling plans, and six different nationcalling plans. Each has different monthly costs, numbers of includedminutes per month, costs of additional units per month, and includedfeatures. Similarly, AllTell Cellular offers three local plans, fiveregional plans, and six national plans all of which have differentpricing, features, and number of included minutes per month. AT&T andSprint offer comparable levels of diversity. Even Nextel.com, a serviceprovider that presents itself as offering progressive plans, includingan unlimited service plan for about $99 per month, a price pointsubstantially higher than that of the present invention, offers a widearray of plans. For example, Nextel's offering includes digital cellularservice (locally, national, and worldwide), a digital radio, businessnetwork, business directories, messaging services, online wireless,worldwide service, and additional service features such as: one secondrounding, caller ID, call waiting, call forwarding, voice mail, noroaming, additional lines, three-way calling, and call restriction. Ateach of its levels of rate plan, Nextel offers several options withdifferent pricing, numbers of included minutes, and features. Inaddition, virtually all of these cellular operators offer an array ofhandsets, featuring numerous features and options.

[0245] The net result of the diversity of handsets, rate plans, andservice offerings, is not only consumer confusion and bewilderment,maintaining this array of options increases the operators' directselling expense. It requires the operator to maintain a highly trainedworkforce at the point of sale, in order to answer and resolve theconsumer's questions. It requires substantial inventory. The presentinvention avoids this complexity and its attendant effect to complicatethe sales process and increase direct, as well as indirect, sellingexpenses.

[0246] The present inventors anticipate that better balance can beachieved by the present invention on inter-connect costs than wasavailable through systems of the type known prior to the presentinvention. The present inventors further believe that their flat ratepricing encourages balance by eliminating minute of use-based pricing.Specifically, the present invention may allow the inter-connection costbalance to migrate from approximately 65/35 to 65/45 or a number closerto 50/50 over a period ofyears. Although the present inventors initiallyanticipated that this process may take about 4 years, the presentinvention has achieved unexpected results, in which a 53/47inter-connect balance has been achieved within approximately a year anda half.

[0247] The present invention also obtains numerous network operatingefficiencies. In a preferred embodiment of the present invention, directlabor cost is reduced. This is, in part, a result of deploying fewercells, larger cells, and using less equipment. Similarly, lease costsare reduced. This is a result of the reduction of the number of cellsites and towers, as well as a reduction of the level of investmentrequired for fixed network and facilities. The simpler operating modelof the present invention, relative to prior known systems is enhanced bythe use of larger cells, flat monthly rate structures versus minutes ofuse revenue-based structures, and basic services versus feature-drivenpricing. Back office operating efficiencies are enhanced and costreduced due to simplified prepaid product offering.

Components of the Business Model; Operations; and Network and SystemsEmbodiment

[0248] The present invention comprises various embodiments, that may beused separately, or in combination with one or both other embodiments.Viewed generally, the embodiments of the present invention are as: abusiness model; operations; and network and system. In turn, thoseembodiments each comprise one or more functional elements. Theseelements may be used separately, or in combination with one another, orelements of one type of embodiment may be used in combination withelements of the others.

[0249] The business method embodiments of the present invention compriseinnovations in one or more of the following areas: business method;economic model implementing that method; capital utilization;“all-you-can-eat” pricing model; capacity driven service; “wireline”design for capacity rather than coverage; based upon where people live,work, and play; and various operational features and functions.

[0250] The operational embodiments of the present invention comprise oneor more of the following features: marketing; brand strategies andimplementation; selling channels; sizes, configurations, and locationsfor selling; product design and selection; phone selection; phoneactivation; appropriate staffing in each functional area and balancebetween each functional area in order to achieve the cost advantage ofcertain embodiments of the invention; driving substantial costcomponents out of, or at least down relative to prior known cellularsystems; financial modeling; back office operations; billing; financialmodels; call center; customer service; maintenance; and NetworkOperations Center (“NOC”).

[0251] The network and systems embodiments of the present inventioncomprise: network design; equipment; systems; traffic modeling; growth;deployment; systems integration; maintenance; and financial modeling.

[0252] Turning now to each of these basic embodiments, it will beapparent to persons of ordinary skill in the art that each of suchembodiments may in turn be embodied in various ways. The assignee of thepresent inventors has embodied various aspects of the present inventionin a service offering in the Chattanooga, Tennessee market, that is soldunder the “CRICKET” brand. The business method, operations, and networkand systems of the present invention have been referred to by thepresent inventors as the “Cricket Model.”

[0253] The business method of the “Cricket Model” features any one ormore of the following improvements: simplified back office; networkdesign for in-building coverage; lower marketing costs; and flat-ratefee for service. The Cricket Model offers “wire line” type service on acellular network, namely, it provides service where people “live, work,and play.” The system is designed for “capacity” rather than “coverage.”This business model, however, is very different in many respects fromthe model for cellular systems of the type known prior to the presentinvention. Consequently, the Cricket Model was received skeptically bypersons skilled in the wireless industry, who were experienced with moretraditional cellular models.

[0254] The operations of the present invention differ in any one or moreof a numerous respects from the operations of cellular systems of thetype known prior to the present invention. These operational featureshave been referred to by the assignee of the present invention as the“Cricket Differentiators”. These include, but are not limited to: callcenter; customer operations; internal infrastructure; long distance;voice over IP; billing; trouble ticketing; and Network Operations Center(NOC).

[0255] The operations of the present invention involve a number ofimprovements relative to prior known cellular systems. The billingsystem is modified and improved. The format, customer service screensand interfaces, and return and repair functions are improved. Simplified“one-line billing” is preferred. The billing is based upon a flat ratefor cellular service. Preferably, that rate is low enough to attractadditional users who are eliminated by traditional metered billingformats based upon minute of use charges. Payment is requested inadvance, eliminating or substantially reducing accounts receivable.Service is terminated for non-payment, eliminating or reducingcollections operations.

[0256] The present inventors anticipate serving market segments thatoperators of wireless communication systems the type known prior to thepresent invention have either failed to serve, or in which they haveshown limited or no interest. In particular, individuals residing inhouseholds with incomes less than approximately $75,000 per year,generally have not been a target of marketing efforts by prior knowncellular system operators. This is primarily because the targets ofthose systems have been business and heavy users who are relativelyinsensitive to price. Individuals who do not have credit or whose creditis challenged are also not well served by systems of the type knownprior to the present invention. Many system operators require creditchecks as well as execution of a formal cellular services contract withconsumers. Credit checks alone may eliminate 30 to 60% of potentialcustomers.

[0257] The present inventors have identified a number of demographicsegments that they believe have been under served or not been thesubject of significant interest by operators of prior wirelesscommunication systems. These include, without limitation: New wageearners (age 25 to 35); Blue-collar workers; Secondary income spouses;College students; and Teenagers. The present inventors have developeddemographic profiles of each of these key market segments and have foundcertain features that tend to characterize these various segments. Newwage earners are likely to move residences frequently. They likely spenddiscretionary time outside of their primary residence. They focus onconvenience and usage. In addition, the present invention may readilybecome their primary phone.

[0258] Blue-collar workers tend to have a more stable residence. Thepresent invention allows easy and convenient outbound communications.Business usage tends to be limited in this segment and usage insteadtends to focus on friends and family. The present inventors anticipatethat, in this market segment, the present invention will evolve tobecome the primary phone in approximately 18 to 24 months of usage.

[0259] Secondary income spouses also tend to have stable residences.Nonetheless, they tend to be very mobile within a local area,particularly with their children. They are looking for affordableconvenience. Although they may expect limited usage of the phone, theytend to evolve into a pattern of primary usage of the wireless phone ofthe present invention in a period of 24 to 36 months.

[0260] College students tend to move their residence frequently, and areunlikely to be in any one place for an extended period of time. Thismarket segment was generally overlooked by operators of conventionalsystems prior to the present invention due to the high churn rate at theend of semesters. This group tends to use wireless communicationservices for convenience and tends to use the phone heavily. It quicklybecomes their primary phone.

[0261] Teenagers also tend to exhibit a stable pattern of residence butare looking for ways to assert their independence. The present inventionprovides convenience and privacy and quickly becomes their primaryphone.

[0262] Some of the features of traditional wireless communicationsystems are particularly ill-suited for these market segments. Forexample, traditional operators tend to require extended (for example,one year) contracts. Credit checks may prove problematic for certainindividuals. The present invention, eliminates these disadvantages. As aresult of the realigned service offering of the present invention,neither pre-subscription contracts nor credit checks are necessary.Although they could be employed, they tend to increase costs and limitthe demographic segment to whom the services may be extended.

[0263] In the present invention, training procedures are modified andimplemented. In addition, improvements are implemented to bring cost pergross add down to preferred levels. The sales strategy approaches highvolume, low value channels that were typically shunned by conventionalcellular operators. Indirect selling is implemented.

[0264] In a preferred embodiment of the present invention, companystores are modified and adopt a unique look and feel as well as formatand style. Indirect costs are managed, in order to drive the cost ofselling to the lowest possible level. Mass merchandising channels may beused. In addition, the offering of products (phones) service packages,accessories, and functions is curtailed to simplify the offering andreduce costs. The processes and procedures employed in selling aremodified to reduce the cost to convert a new customer to the service ofthe present invention.

[0265] Customer service is improved to lower acquisition cost.Over-the-air activation is implemented to enable mass merchandisingchannels and reduce or eliminate activation costs. In order to overcomethe substantial biases of the industry toward the prior known models andmethods, the present inventors implemented orientation, training, andeducational materials and programs. Office space costs were reduced inview of the favorable cost structure the invention offers.

[0266] The assignee of the present inventors has also included longdistance service within the present invention. The long distance serviceof the present invention is preferably pre-paid. The assignee of thepresent invention accepts payment by credit card and cash, and envisionsthat various alternative payment plans may be included within thepresent invention, including, without limitation: monthly billing;automatic debiting of credit cards; over-the-air purchase authorizationand payment; and any other appropriate billing and payment mechanism.Long distance traffic is routed from the user's phone, to the switch ofthe present invention, to a dedicated long distance service box, thebalance in the user's pre-paid account (“gas tank”) is then checked and,if the user's balance is adequate, the call is routed through a longdistance service provider.

[0267] Some preferred embodiments of the present invention include aninternal network to facilitate the operational improvements of thepresent invention at reduced cost. These may include: billing; hotlines; call center; trouble ticketing; NOC; and engineering. Theinternal network of the present invention offers substantial advantages.It is preferably a “voice over IP” network. It operates as a Frame Relaynetwork. Market hubs are connected to regional offices, which are inturn connected to assignee's operation center in San Diego. Thisinternal network provides data and operational support, as well as Voiceover IP service, within assignee's operations. The present inventorsanticipate that this internal network could also carry local or longdistance traffic relating to the “Cricket” business model, operations,and network and system of the present invention.

[0268] The network and systems of the present invention are adapted toprovide capacity to service users where they live, work, and play,rather than coverage of a geographic area, as in prior known cellularsystems. These features are depicted in the maps, as shown in FIGS. 8and 9. To accomplish this coverage pattern, the footprint of the systemis modified relative to prior known cellular systems. Specifically, thecoverage footprint of the present intention is a function of density,competition, and locations and attractions where those users live, workand play within the service area. The system design was adapted toprovide high capacity in those areas, at the expense of low usageportions of prior known cellular networks where capacity may have beenmaintained for roaming use. This can be seen by comparing FIG. 8(pre-cut coverage) with FIG. 9 (post-cut coverage). Although various ofthe embodiments of the present invention could offer roaming, it is nota critical or essential element of the present invention and iseliminated from preferred embodiments.

[0269] The “capacity” vs. “coverage” feature of the present invention isimplemented through various design criteria: adding cells in downtownareas; rework of network design to focus on traffic patterns;modification of the equipment; modifying the geographic extent ofcoverage; and altering the amount of traffic various cells are carryingin the system. In order to implement some of these improvements, someusers phones were changed out to enable the system to enhance capacity.

[0270] The network modifications of the present invention, relative toprior known inventions, include a number of modifications to improvecapacity. For example, the “in-building” coverage of the network isimproved, relative to “in-vehicle” bias of most prior known systems. Thepresent invention pays particular attention to improving capacity atmalls, buildings, intersections, and other locations where people live,work, and play. Cell sites and their placement are improved. The systemis tailored to “capacity,” rather than “coverage” based upon loadanalyses, switch statistics, and other functional aspects of the system.These improvements were arrived at empirically and through the use ofvarious modeling techniques that are unique to the present invention.

[0271] The specific improvements comprise various stages and types. Theinventors implemented Enhanced Variable Rate Code (EVRC) technology.According to the present invention, high usage subscribers are offeredimproved equipment to enable the network to exploit these capacityimprovements. The present inventors have selected Lucent equipment forvarious reasons, including reliability, and capabilities of thatequipment, relative to other network components. The inventors haveadded a second carrier signal and anticipate adding additional carriersas the need for additional capacity grows.

[0272] When the present inventors deployed the “Cricket” business modelin the Chattanooga, Tenn. market, they took over from the prior systemoperator, ChaseTel. That system incorporated a traditional design of thetype that was known in the art prior to the present invention. The“Cricket” business model, however, requires increased capacity to handlea higher anticipated number of users and higher levels of use thananticipated by prior known metered-use based systems. The presentinventors, therefore, found the existing business model, operation, andnetwork and system of the ChaseTel system to be poorly adapted to thepresent invention.

[0273] Some of these shortcomings exhibited as a high rate of droppedand blocked calls, as shown in FIGS. 10a-c. These failures resultedbecause the prior system was not adapted to optimal placement and sizingof cell sites, inadequate capacity, and an existing design bias towardcoverage and in-vehicle use, in contrast to capacity and in-buildinguse. This resulted in substantial over-subscription of the switch andhigh blocking levels.

[0274] The present inventors implemented various modifications to adaptthe existing Chase network to the “Cricket” business model, operations,and network and system. Ericsson's proprietary “Smart Rate” III serviceversion of EVRC was instituted, increasing capacity modestly. Thepresent inventors subsequently implemented Erickson's “Smart Rate” IVservice which provided additional capacity improvements. The Frame ErrorRate was relaxed. Traditional operators maintain a Frame Error Rate atabout 1 percent. The present inventors believe that the Frame Error Ratemay be relaxed to about 2 percent (or potentially 3%), increasingsystems capacity, without significant degradation of signal quality andquality of service.

[0275] The present inventors modeled the behavior of the network andmodified the size and location of cells. The present invention employsvarious modifications and variations in the design of the service areato improve the capacity of the wireless services offered. Specifically,new sites were defined, some sites were moved or modified, sites wereremoved from service, and new sites were added. The present inventorsalso replaced equipment to add an additional carrier and anticipate thatfurther additional carriers may be added as capacity demand grows.

[0276] The improvements of the present invention enable the wirelessnetwork to achieve increased capacity utilization. The present inventiontends to increase substantially individual user call volume. Byeliminating the increased cost of additional calls and service atparticular times of day, users tend to use their phone more and at morevaried times throughout the day. This increase in overall call volumeenables the network and systems components to be utilized more fully,throughout a greater proportion of the day, resulting in increasedcapacity utilization.

[0277] Although user demand is increased in the present invention, thatdemand is spread more evenly throughout the day, reducing the peakcalling capacity of the system relative to prior known wirelesscommunications networks and systems. As peak demand is reduced, so tooare the capital and operational constraints in meeting the former peakdemand.

[0278] The present invention targets the coverage area to a more limitedgeographic area. Rather than emphasizing coverage throughout as wide anarea as possible, the present invention emphasizes capacity to handlethe demands of the local area. In a preferred embodiment, the presentinvention is adapted to a local calling area, based generally on theRand McNally Trade Area (RMA), rather than seeking extensive coverage ofthe surrounding area. This more limited coverage reduces the number ofcell sites and reduces the capacity of the fewer remaining cells tolevels needed to service the local traffic demand, rather than buildingin substantial overcapacity to handle roaming.

[0279] These improvements, individually and collectively, enable thebusiness method of the present invention to achieve higher capitalutilization. Cells are not built in anticipation of demand and areinstead adapted to demand as it develops. Building fewer cells reducescapital demands. Higher capacity utilization enables the capital that isexpended to be employed more efficiently.

[0280] Cellular services have traditionally been sold through variousrelatively high cost channels, prior to the present invention.Specifically, large advertising campaigns are met on the customer end byspecialized equipment and service offerings. The present inventionadapts the services to the most popular types of cellular phones andreduces the variety of service offerings. The need for specializedselling is eliminated. Simplified in this manner, the services of thepresent invention may be sold through mass merchandising channels thathave not been exploited by prior known wireless offerings.

[0281] Interconnection is roughly balanced in the present system byshifting the balance of call volume from outgoing calls to otheroperators to a more even balance between called made and calls receivedoutside the system. This is accomplished by the pricing structure of thepresent invention, which eliminates or at least reduces thedisincentives of prior known systems to leaving the phone on so that itcan receive unexpected calls.

[0282] The present invention improves back office efficiencydramatically. By simplifying billing and instead issuing a single flatrate bill, the costs of billing are reduced from prior known systems inwhich complex, detailed bills are rendered. Accounts receivable areeliminated in certain embodiments in which the services are pre-paid.Moreover, customer service costs are dramatically reduced by eliminatingdetailed billing, and the numerous questions and complaints that followfrom message unit pricing.

[0283] Finally, the network and system of the present invention improvesystem network operating efficiency. The present invention combines anyof a number of improvements to enhance the pool of available customerswhile driving costs from the system: improved capacity utilization;reduced peak system capacity; targeted area coverage; coverage generallybased upon Rand McNally Trade Area (RMA); improved capital utilization;channels; mass merchandising and simplified direct sales; reducedinterconnect costs; reduced back office operating efficiency; andimproved network operating efficiency.

[0284] Several of the figures provided depict the improvement inperformance of the present invention. FIG. 6 depicts the predictedchange in System RF Blocking Rate upon conversion of a system of theaccording to the present invention. FIG. 7 estimates demand vs. capacityupon conversion to a system according to the present invention. FIG. 10adepicts actual network performance (in terms of dropped and blockedcalls) of both a system known prior to the present invention and asystem according to the present invention. FIG. 10b depicts actualnetwork performance (in terms of dropped and blocked calls) of both asystem known prior to the present invention and a system according tothe present invention. FIG. 10c depicts actual network performance ofboth a system known prior to the present invention and a systemaccording to the present invention with respect to blocked callpercentage.

[0285] In general, the present inventors anticipate that at no timeduring any 24-hour period will the system of the present invention beunused. Each user segment is expected to use at least ¼ minute ofservice during any given hour. Busy hour usage was spread only betweenthe hours of 6 AM and 10 PM. Usage patterns from 11 PM to 5 AM areexpected to be lower. Table 6, below, illustrates the population by usersegment, as contemplated by the present inventors for a typicalinstallation. TABLE 6 Population by User Segment Segment NumberPercentage Breakdown Teens 23,601  4.30% Ages 15-17 College Students30,724  5.60% Ages 18-21 Spouse 65,086 11.85% ½ of Married People >35yrs. Old New Wage Earner 92,890 16.92% Ages 22-34 Blue Collar 96,45017.57% Ages 35-64 with House Hold income <$75K Other 240,291 43.77% Ages0-14 (108,697) Retired ≧65 (77,997) Ages 35-64 with income ≧$75K(23,452) Ages 35-64 with roommate (30,145) Total 549,042 100.00% 

[0286]FIG. 11 illustrates the usage of the teen segment. In the teensegment, the inventors contemplate that the primary use is after schooland into the later parts of the evening. When teens get on the phone,they will stay on it for extended periods of time. They will use theirphones in the morning to arrange rides to school, during the day ingeneral, and during lunch times. As illustrated in FIG. 11, the peakusage is between approximately 3 pm and 5 pm.

[0287]FIG. 12 illustrates the usage of the college student segment. Theusers in this segment tend to awake later in the morning than otherusers, and typically stay up later at night than other segments.Accordingly, their phone use reflects this pattern. Typically, theseusers will use their phone during the later periods of the day andscattered throughout the day depending on an ever changing schedules. Asillustrated in FIG. 12, the peak usage is between approximately 4 pm and8 pm.

[0288]FIG. 13 illustrates the usage of the segment represented bysecondary income spouses. The primary usage in this segment occurs whilechildren are in school between the hours of 8 AM and 2 PM, when userstalk to friends and run errands. The users in this segment will alsohave sporadic usage in the evenings to communicate with other workingfamily members and friends. As illustrated in FIG. 13, the peak usage isbetween 4 pm and 8 pm.

[0289]FIG. 14 illustrates the usage of the segment represented by newwage earners. This group is typically comprised of young professionals.These users do not hesitate to use the office phone during the day, butwill use their wireless phones on the way to work, during the lunchperiod and directly after work to stay in contact with a large group offriends. As illustrated in FIG. 14, the peak usage is between 4 pm and 8pm.

[0290]FIG. 15 illustrates the usage of the segment represented by bluecollar workers. This segment will use their phones on their way to andfrom work, during the noon period and in the early evening. They willnot hesitate to use the office phone, if available, during workinghours. As illustrated in FIG. 15, the peak usage is between 3 pm and 8pm.

[0291]FIG. 16 illustrates the usage of the segment that can best bedescribed as “other.” This segment is comprised of a mix of people.Their usage is spread across the day with heavier usage during the noonand evening hours.

[0292]FIG. 17 is a graph of the usage distribution for all userscomparing the modified model with the actual data.

[0293]FIG. 18 is a chart illustrating the unexpected success of thepresent invention. FIG. 18 illustrates some of the substantialadvantages of a preferred embodiment of the present invention oversystems of the type known prior to the present invention. When theChattanooga system was deployed as a Cricket system in early 1999, itincluded very few improvements and enhancements of the presentinvention. During the course of the first year of deployment, numerousimprovements and enhancements were made to implement the presentinvention in the Chattanooga market. Specifically, numerous additions tothe operational features were added during mid- to late-1999, and thenetwork components were cut over to a network operating system of thepresent invention at the end of January 2000.

[0294] In spite of the fact that many of these features were present foronly a portion of the first year of operation, the Cricket systemachieved a 7.7 percent market penetration in 12 months of operation ofthe Chattanooga market. The costs were less than $230.00 per customer.The support costs per average subscriber were approximately $5.60 andthe operations costs per minutes of use was 1.3 cents. These resultsamplify the substantial and unexpected results achieved by the presentinvention. On each of these criteria, the performance of the presentinvention, both on a market penetration basis and a cost reductionbasis, far out strips the performance of systems of the type known bythe present inventors prior to the present invention.

[0295] Part of the reason for the unexpected and substantial success ofthe present invention is that it meets a long felt and unmet need of themarket for wireless communication services. While operators of systemsof the type known prior to the present invention have focused primarilyon price-insensitive business and heavy users, large segments of themarket who would use wireless communication services at a lower pricepoint have been ignored or under-served. Most of this under servedsegment readily uses wireline telephony of the type offered by theIncumbent Local Exchange Carriers (ILEC) and Competitive Local ExchangeCarriers (CLEC). The price point, however, for these types of servicesis traditionally much lower than that of wireless communication servicesof the type known prior to the present invention.

[0296] Table 7 illustrates a comparison of the pricing and services anddepict some of the reasons why the present inventors believe theirbusiness method, operations method, and network have been so successful.FIG. 7 compares the services, typical minutes of use per month, andaverage revenue per user of various types of telephony systems, namely,Cellular, PCS, the present invention, and traditional fixed wirelineservice available through ILEC's and CLEC's. This comparison revealsthat, on these criteria, the present invention approximates the level ofservice available from traditional wireline service at a cost thatapproximates traditional wireline service, while offering many of thesame features of other wireless communications networks. The presentinventors believe that these features explain, at least in part, thelong felt need, and substantial and unexpected success of the presentinvention in the market place. TABLE 7 Product Comparison PricingProduct Service MOUs ARPU Cellular Wide footprint with feature-richservice in digital footprint 100 $20-22 coverage area and analogservices in the rest of the covered 200 45 area. Nationwide roamingavailable. Voice quality varies 500 100 and coverage is highway-focused.1000 200 PCS Reasonable digital footprint with rich feature set. Large100 $20-22 roaming footprint available with good voice quality. 200 40500 90 1000 160 PCP Regional digital coverage (local and toll) of areaswhere the 100 $28 user lives, works, shops, and plays with attachingmajor 200 28 artery coverage. Limited feature offering of those services500 28 most wanted. No roaming. 1000 28 ILEC/ Fixed traditional wirelineservice with local service and rich 100 $22 CLEC feature set. Tollservices and extra - although nominal charge 200 22 and low penetrationof services (call waiting, call forwarding, 500 22 conference and voicemail). 1000 22

[0297] The present inventors believe that the unique combination of thebusiness method, operations method, and network enables the user toderive a level of service that closely approximates that of theirwireline telephone service, at a cost that is close to their wirelineservice, yet with enjoying the features of a wireless telecommunicationssystem. These benefits have not been offered or obtained from any of thesystems of the type known by the present inventors prior to the presentinvention.

[0298] The cost efficiency of the present invention is gained in fourdiscrete ways. First, the technology employed by the present inventionis, in the view of the present inventors, the best available technologyfor running a wireless communication system. Second, the presentinvention uses the inherent advantages of CDMA technology at its best.Systems capacity is loaded and operated at a high level. This allows thesystem to exploit the air interface at an optimal level. Third, CDMAsystem closely tracks minutes of use from a wireline operation model.This allows the CDMA technology to achieve several of the advantages offixed applications. Fourth, the CDMA system avoids many of the issuesthat plagued prior attempts to introduce high capacity service, such asthe PHS system discussed above. Instead, CDMA provide high voice qualityand coverage similar to mobile service offerings of the type known priorto the present invention.

[0299] Table 8 compares mobile systems of the type known prior to thepresent invention, standard wireline systems, and the system of thepresent invention on a number of criteria. TABLE 8 ComparativePerformance Present Mobile Wireline Invention Busy-hour Erlangs Business20 me 80 me  0 me Residential 10 me 50 me 50 me Minutes of Use(Average/Month) Business 200-300 ˜2000 0 Residential <150 ˜900 950Peak-hour System 17-20% 10-12% 10-12% Traffic

[0300] In certain preferred embodiments to the present invention, thepresent inventors consider the link budget of the network of the presentinvention to be a key network planning parameter. Another feature of thepresent invention that distinguishes the invention from prior knownsystems is the deployment of a second or third carrier frequency uponlaunch of the network or shortly thereafter. As noted by Webb, thegenerally accepted approach of wireless system operators prior to thepresent invention was to install the minimum capacity necessary toservice the expected subscriber base and not to boost capacity untildemand had saturated the system, requiring capital improvements. Thepresent inventors, in contrast, designed their system for capacity, asopposed to geographic coverage. In order to achieve the highest capacityutilization, particularly in densely populated areas of the network, asecond or even a third carrier frequency may be added from launch of thenetwork of shortly thereafter. The link budget of the network of thepresent invention reflects these facts.

[0301] In a preferred embodiment of the present invention, the EB/NOequals 5.5 db. This assumes reduced mobility and increased networkcapacity. The maximum number of users per sector is normally 15 for amobile phone system of the type known prior to the present invention. Incontrast, the maximum number of users per sector of the presentinvention is 19 and the average number 12.6.

[0302] Similarly, the coverage design conditions of the presentinvention entail the use of a higher decibel level than in prior knownsystems. In a preferred network of the present invention, the in-homedesign coverage condition is 12-15 db. Similarly, in building coverageis preferably designed at 18 db.

[0303] The present inventors have also been able to contain coststhrough the use of centralized cost control techniques. By centralizingthe operation of a number of the cost centers of the wirelesscommunications network, the present inventors have been able to isolatecosts and procedure. In various preferred embodiments of the presentinvention, procedures are standardized, which enables the operator toreduce costs in order to achieve some of the advantages of the presentinvention.

[0304]FIGS. 21 through 34 depict various standardized processes of theback office operation of a preferred embodiment of the presentinvention. FIG. 21 depicts one such method of standardization. FIG. 21is a flowchart depicting how the cost center of the back office of anembodiment of the present invention routes and handles call traffic. Theinvention incorporates a series of process flows addressing variousissues such as: adding phones; removing phones; transferring;suspending; long distance; restoring phone service; activating andreactivating a phone; returns; and purchases.

[0305]FIG. 22 is a flowchart depicting the process for set up andactivation. The goal of the process is to provide service in one-callresolution wherever possible. FIG. 23 depicts a process for adjustingthe financial aspects of an account, including posting credit cardpayment, accrediting an account, crediting phone service, or adding acharge to an account. FIG. 24 is a flowchart depicting how to add aphone to an account in a preferred embodiment of the operation method ofthe present invention. FIG. 25 is a flowchart that explains how tochange general information on an existing account in a preferredembodiment of the present invention. The process is complete when thesubscriber's information has been verified for accuracy and the systemhas been adjusted. FIG. 26 depicts the process for changing a phonenumber and adjusting acceptance of the optional features offered by thewireless system operator in a preferred embodiment of the presentinvention. FIG. 27 depicts the process for changing credit cardinformation in a preferred embodiment of the present invention.Similarly, FIG. 28 depicts the process for changing recurring creditcard payment information in a preferred embodiment of the presentinvention. FIG. 29 is a flowchart depicting the process for transferringa phone, in a preferred embodiment of the present invention.

[0306] One of the features of the present invention that enables thesystem operator to maintain at cost is the elimination of accountsreceivable and collections. This is accomplished through billing andpayment in advance of receipt of the services.

[0307] The present inventors have found that it is not sufficient simplyto prebill and require prepayment. In the absence of affirmative stepsto prevent accrual of bad debt, back office costs can still becomeunnecessarily high. In a preferred embodiment of the present invention,service is terminated within a short period of time after the beginningof the month, if the user has not in fact prepaid their service for thatmonth. Typically, in a preferred embodiment of the present invention, ifa user has not paid by the fifth day of the month, services terminatedand the account is “hotlined.” FIG. 30 depicts the process of hotliningand the process of restoring hotlined service to an account. Since thehotlining and restoration is strictly a payment process on the part ofthe caller, security code verification is unnecessary, further reducingback office costs. An account may be hotlined either voluntarily orinvoluntarily in the preferred embodiment of the present invention.

[0308]FIG. 31 depicts the process for removing a phone from amulti-phone account. FIG. 32 depicts the process of disconnecting aphone from a single phone account. Another key feature that the presentinventors have found has helped reduce back office costs is to detail asmany of the frequently asked questions as possible, and enable the callcenter to anticipate inquiries. FIG. 33 depicts a process for dealingwith frequently asked questions and updating the standardized list offrequently asked questions when call center personnel encounters issuesthat have not been previously covered.

[0309] Another key component for reducing back office costs andachieving the cost advantages of the present invention is a reduction inthe number of billing inquiries. This is accomplished in a preferredembodiment of the present invention by eliminating detailed callrecords. Most of the call center call traffic relates to questions aboutspecific calls. Elimination of detailed records eliminates that calltraffic and of the associated costs. FIG. 34 is a flowchart that depictsthe steps involved in handling billing questions, in a preferredembodiment of the present invention.

[0310] The present inventors believe that by standardizing as many ofthe back office and call center processes as possible, and imposingrigorous quality control, the costs associated with operating the backoffice component of the wireless communications network can be reduceddramatically providing a number of the advantages of the presentinvention.

Adapting an Existing Network Infrastructure to the Business Model of thePresent Invention

[0311] The present inventors anticipate that in view of the distinct andsubstantial advantages of the present invention, operators of networksof the type known prior to the present invention may adapt their exitingnetwork to the business model, operation method, and/or network designof the present invention, thereby expanding their level of service tocustomers and deriving substantial additional revenues. Due to some ofthe differences in the operations method in network design of thepresent invention relative to prior known wireless communicationsystems, re-engineering the cost structure of an existing network hascertain distinct advantages. The Assignee of the application is aware ofseveral competitors who have, after launch of Assignee's services,attempted to copy Assignee's fixed price, unlimited use offering.

[0312]FIGS. 20a and 20 b depict several of the discreet steps that maybe used in a preferred process of re-engineering the cost structure ofan existing network to achieve some of the advantages of the presentinvention. For example, the improvements in network build-out wouldresult in lower capital costs. Improvements in network operations of thepresent invention would reduce substantially the back office and callcenter costs, which results in lower network operating costs. Customeracquisition costs would also fall, due to the rapid, simple sales cycleand direct distribution to a larger pool of prospective customers. Thistoo would result in lower cost per gross add. Similarly, with respect tocustomer service, the high capacity and quality of the network,simplified billing, and reduced reliance by the customer on the backoffice operations results overall in lower back office costs.

[0313] Nonetheless, upgrading an existing PCS-type network to provideadequate capacity for the expected first year subscribers for thewireless communication service of the present invention may requiresubstantial capital investment. Assuming approximately 6 percentpenetration, in addition to the existing mobility subscribers, upgradingmay require incremental capital expenditures equal to approximately 70percent of the network's original cost.

[0314] Implementing an offering of the type of the present invention inaddition to an established brand of wireless service would tend todilute and devalue the existing brand. Creation of a separate brand forthe offering of the present invention, on the other hand, would avoiddilution to and devaluation of the existing brand. It tends to be verydifficult for a single organization to effectively implement differentmarketing strategies aimed at different audiences. Creating a separatebrand and distinct organization, therefore, would more likely succeed byvirtue of its single market focus. The offering of the presentinvention, however, may lead to migration of high ARPU mobilitycustomers to the lower ARPU plan of the present invention. In addition,the service offerings of existing wireless communications networks ofthe type known prior to the present invention are focused in a differentmanner than that of the present invention. Existing mobility servicestend to require broader geographic coverage and enhanced features. Incontrast, the wireless communication services of the present inventionrequire narrow geographic coverage, relatively limited features, andhigh capacity.

[0315] Table 9 depict some of the assumptions and differences betweenthe present invention and a typical PCS based system. TABLE 9 KeyAssumptions in Converting a PCS-Type System to the System of the PresentInvention Assumption/Criterion PCS-Type System Present Invention CoveredPots 1.0 m 1.0 m Covered Area 1,200 km sq. 1,200 km sq. Cell SitesCoverage 96 96 Cell Sites Highway 10 0 Minutes of Use 325 1000 Busy HourDays 22 24 Percent of Calls Blocked 12%  8% Erlangs Per Subscriber 0.030Erlangs 0.055 Erlangs

[0316] Table 10 depicts some of the capital expenditure required toconvert an existing network of the type known prior to the presentinvention to the business method, operation, and/or network of thepresent invention. TABLE 10 Capital Expenditure to Convert an ExistingPCS-Type System to Wireless Communication Network of the PresentInvention PCS-Type Present PCS-Type System System Invention PresentInvention Cell Sites Coverage 96 Additional Carriers 155 Highway Sites10 Additional $2.6 M Optimization Total Capital $47.7 M Total Capital$33.6 M Expenditure Expenditure

[0317] Therefore, the present inventors anticipate that it could cost 70percent more in terms of capital expenditure to convert a wirelesscommunications network of the type known prior to the present inventionto the business method, operation method, and/or network of the presentinvention.

[0318] In fact, other operators have attempted to copy the businessmethod, operations method, network, and/or system of the presentinvention. In the Fall of 2000, BellSouth, AllTel, and US Cellular, eachannounced the launch of unlimited service plans in the Knoxville, Tenn.;Tucson, Ariz., and Albuquerque, N.M.; and Knoxville, Tenn. markets,respectively. AllTel's offering, in particular, provides evidence ofsecondary considerations supporting the patentability of the presentinvention.

[0319] Although AllTel had previously stated that they would not launchan offering of the type of the present invention, upon learning detailsof the Assignee's success using the business method, operations method,network, and system of the present invention, AllTel copied some of thecritical features of the invention.

[0320] In particular, AllTel abandoned its prior skepticism of theinvention and adopted several features of the invention including,without limitation: flat rate billing for unlimited service at a lowlevel of ARPU; bill-in-advance and pay-in-advance service; and separatebranding, along with other features.

[0321] Applicant does not assert that all prepaid plan offerings woulduse the present invention. For example, Freedom Wireless, the assigneeof U.S. Pat. No. 6,157,823, recently sued a number of operators for useof a prepaid subscriber account feature. Nonetheless, prepaid servicefor a predetermined number of minutes of use could be employed alongwith other of the elements or embodiments of the present invention, inlieu of the flat rate, unlimited use elements of the present invention.

[0322] It will be apparent to persons of ordinary skill in the art thatvarious modifications and variations may be made to the business method,operations method, network and/or system of the present invention,without departing from the scope or spirit of the invention. Forexample, each of the principal embodiments of the invention may be usedseparately or in conjunction with one or another. Further, each of thevarious elements identified with each embodiment may be used eitherseparately, in conjunction with one another, as well as in conjunctionwith elements of other or both of the remaining embodiments of thepresent invention. Moreover, depending on the type and disposition ofthe system an operator is running, certain of the embodiments and/orelements may provided substantial or little relative additional benefit.The present inventors do not intend that it is necessary to adopt anyparticular embodiment or all or any particular elements of any one ormore embodiments of the invention. Rather, depending on thefunctionality and benefits desired, the operator may use the inventionsin various combinations of the embodiments and elements of theintention. Various changes may be made in the network architecture,systems, and components of the present invention, as well as in thetechnology employed and standards governing the operation of the system.The present inventors intend that their invention would provide a viablebusiness model to improve wireless communication services, in spite ofany differences in network architecture, technology standards, orcomponents, either as they exist today or as they may be develop in thefuture. Thus, it is intended that the present invention cover themodifications and variations of the invention provided they come withinthe scope of the appended claims and their equivalents.

We claim:
 1. A method of rendering wireless communications services toone or more subscribers in return for payment of a charge, comprising:determining a flat rate charge for the services; determining a period oftime within which the flat rate charge shall apply; determining theuser's charge based upon the flat rate for the period of time; providingunlimited access to the wireless communications services for the flatrate during the period of time; and receiving payment of the chargesubstantially before the wireless communications services are renderedto the subscriber.
 2. The method of claim 1, further comprisingdetermining the value of the flat rate without relation to minutes ofuse by the user of the wireless communications services during theperiod of time.
 3. The method of claim 1, further comprising determiningthe value of the flat rate without relation to the number of calls madeor received by the user during the period of time.
 4. The method ofclaim 1, wherein the period of time further comprises a predeterminedperiod of time.
 5. The method of claim 1, further comprising charging aflat rate for the period of time that is proportional to a rate of lessthan or equal to about $50 per month.
 6. The method of claim 1, furthercomprising charging a flat rate for the period of time that isproportional to a rate of less than or equal to about $30 per month. 7.The method of claim 1, further comprising allowing use at a rate for theperiod of time that is proportional to a rate of more than or equal toabout 300 calls per month.
 8. The method of claim 1, further comprisingallowing use at a rate for the period of time that is proportional to arate of more than or equal to about 400 minutes of use per month.
 9. Themethod of claim 1, further comprising allowing use at a rate for theperiod of time that is proportional to a rate of more than or equal toabout 600 minutes of use per month.
 10. The method of claim 1, furthercomprising allowing use at a rate for the period of time that isproportional to a rate of more than or equal to about 800 minutes of useper month.
 11. The method of claim 1, further comprising allowing use ata rate for the period of time that is proportional to a rate of morethan or equal to about 1000 minutes of use per month.
 12. The method ofclaim 1, further comprising adapting the wireless communicationsservices as the user's primary telephone service.
 13. The method ofclaim 1, further comprising maintaining the average revenue per user ata rate for the period of time that is proportional to a rate of lessthan or equal to about $40 per month, and wherein the average minutes ofuse of the services per user is at a rate for the period of time that isproportional to a rate of greater than or equal to about 200 minutes permonth.
 14. The method of claim 1, further comprising maintaining theaverage revenue per user at a rate for the period of time that isproportional to a rate of less than or equal to about $30 per month, andwherein the average minutes of use of the services per user is at a ratefor the period of time that is proportional to a rate of greater than orequal to about 500 minutes per month.
 15. The method of claim 1, furthercomprising maintaining the average revenue per user at a rate for theperiod of time that is proportional to a rate of less than or equal toabout $30 per month, and wherein the operating expense per user is at arate that is proportional to a rate of less than or equal to about $26per month.
 16. The method of claim 1, further comprising: maintainingthe average revenue per user at a rate for the period of time that isproportional to a rate of less than or equal to about $30 per month; andmaintaining the margin for the operator of the wireless communicationsservices at greater than or equal to about 15%.
 17. The method of claim1, further comprising providing the wireless communications servicesprimarily in limited geographic areas in which the user substantiallylives, works, and plays.
 18. The method of claim 1, further comprisingmaintaining a user churn rate of less than about 4% for users who haveretained the services for about three or more months.
 19. The method ofclaim 1, further comprising maintaining the operating expense persubscriber at a rate that is proportional to a rate of less than orequal to about $26 per month.
 20. The method of claim 1, furthercomprising maintaining the cash cost per unit at less than or equal toabout $20.
 21. The method of claim 1, further comprising maintaining theacquisition cost per subscriber at less than or equal to about $230. 22.A method of rendering wireless communications services to one or moresubscribers in return for payment of a charge, comprising: determining aflat rate charge for the services; determining a period of time withinwhich the flat rate charge shall apply; determining the user's chargebased upon the flat rate for the period of time; providing unlimitedaccess to the wireless communications services for the flat rate duringthe period of time; receiving payment of the charge substantially beforethe wireless communications services are rendered to the subscriber;providing the wireless communications services primarily in limitedgeographic areas in which the user substantially lives, works, andplays; and rendering the charges to the user in a billing statement thatdoes not include detailed call records.
 23. The method of claim 22,further comprising determining the value of the flat rate withoutrelation to minutes of use by the user of the wireless communicationsservices during the period of time.
 24. The method of claim 22, furthercomprising determining the value of the flat rate without relation tothe number of calls made or received by the user during the period oftime.
 25. The method of claim 22, wherein the period of time furthercomprises a predetermined time period.
 26. The method of claim 22,further comprising charging a flat rate for the period of time that isproportional to a rate of less than or equal to about $50 per month. 27.The method of claim 22, further comprising charging a flat rate for theperiod of time that is proportional to a rate of less than or equal toabout $30 per month.
 28. The method of claim 22, further comprisingallowing use at a rate for the period of time that is proportional to arate of more than about 400 minutes of use per month.
 29. The method ofclaim 22, further comprising allowing use at a rate for the period oftime that is proportional to a rate of more than about 600 minutes ofuse per month.
 30. The method of claim 22, further comprising allowinguse at a rate for the period of time that is proportional to a rate ofmore than about 800 minutes of use per month.
 31. The method of claim22, further comprising allowing use at a rate for the period of timethat is proportional to a rate of more than about 1000 minutes of useper month.
 32. The method of claim 22, further comprising adapting thewireless communications services as the user's primary telephoneservice.
 33. The method of claim 22, further comprising maintaining theaverage revenue per user at a rate for the period of time that isproportional to a rate of less than or equal to about $40 per month, andwherein the average minutes of use of the services per user is at a ratethat is proportional to a rate of greater than or equal to about 200minutes per month.
 34. The method of claim 22, further comprisingmaintaining the average revenue per user at a rate for the period oftime that is proportional to a rate of less than or equal to about $30per month, and wherein the average minutes of use of the services peruser is at a rate that is proportional to a rate of greater than orequal to about 500 minutes per month.
 35. The method of claim 22,further comprising maintaining the average revenue per user at a ratefor the period of time that is proportional to a rate of less than orequal to about $30 per month, and wherein the operating expense per useris at a rate for the period of time that is proportional to a rate ofless than about $26 per month.
 36. The method of claim 22, furthercomprising: maintaining the average revenue per user at a rate for theperiod of time that is proportional to a rate of less than about $30 permonth; and maintaining the margin for the operator of the wirelesscommunications services at greater than or equal to about 15%.
 37. Themethod of claim 22, further comprising maintaining a user churn rate ofless than about 4% for users who have retained the services for aboutthree or more months.
 38. The method of claim 22, further comprisingmaintaining the operating expense per subscriber at less than or equalto about $26 per month.
 39. The method of claim 22, further comprisingmaintaining the cash cost per unit at less than or equal to about $20.40. The method of claim 22, further comprising maintaining theacquisition cost per subscriber at less than or equal to about $230. 41.A method of rendering wireless communications services to one or moresubscribers in return for payment of a charge, comprising: determining aflat rate charge for the services; determining a period of time withinwhich the flat rate charge shall apply; determining the user's chargebased upon the flat rate for the period of time; providing unlimitedaccess to the wireless communications services for the flat rate duringthe period of time; rendering the charge to the user in a billingstatement that does not include detailed call records; receiving paymentof the charge substantially before the wireless communications servicesare rendered to the subscriber; determining a geographic area in whichthe user substantially lives, works, and plays; providing the wirelesscommunications services only in the determined geographic area;maintaining centralized control of the wireless communications services;and operating the wireless communications services to optimize costcontainment rather than revenue generation.
 42. The method of claim 41,further comprising determining the value of the flat rate withoutrelation to minutes of use by the user of the wireless communicationsservices during the period of time.
 43. The method of claim 41, furthercomprising determining the value of the flat rate without relation tothe number of calls made or received by the user during the period oftime.
 44. The method of claim 41, wherein the period of time furthercomprises one or more months.
 45. The method of claim 41, furthercomprising charging a flat rate of less than about $50, and wherein theperiod of time comprises one or more months.
 46. The method of claim 41,further comprising charging a flat rate of less than about $30, andwherein the period of time comprises one or more months.
 47. The methodof claim 41, further comprising allowing more than about 400 minutes ofuse per month.
 48. The method of claim 41, further comprising allowingmore than about 600 minutes of use per month.
 49. The method of claim41, further comprising allowing more than about 800 minutes of use permonth.
 50. The method of claim 41, further comprising allowing more thanabout 1000 minutes of use per month.
 51. The method of claim 41, furthercomprising adapting the wireless communications services as the user'sprimary telephone service.
 52. The method of claim 41, furthercomprising maintaining the average revenue per user at less than about$40 per month, and wherein the average minutes of use of the servicesper user is greater than about 200 minutes per month.
 53. The method ofclaim 41, further comprising maintaining the average revenue per user atless than about $30 per month, and wherein the average minutes of use ofthe services per user is greater than about 500 minutes per month. 54.The method of claim 41, further comprising maintaining the averagerevenue per user at less than about $30 per month, and wherein theoperating expense per user is less than about $26 per month.
 55. Themethod of claim 41, further comprising: maintaining the average revenueper user at less than about $30 per month; and maintaining the marginfor the operator of the wireless communications services at greater thanor equal to about 15%.
 56. The method of claim 41, further comprisingmaintaining a user churn rate of less than about 4% for users who haveretained the services for about three or more months.
 57. The method ofclaim 41, further comprising maintaining the operating expense persubscriber at less than or equal to about $26 per month.
 58. The methodof claim 41, further comprising maintaining the cash cost per unit atless than or equal to about $20.
 59. The method of claim 41, furthercomprising maintaining the acquisition cost per subscriber at less thanor equal to about $230.
 60. A method of marketing wirelesscommunications services to one or more subscribers, comprising: offeringa simplified rate plan; simplifying the marketing offering; and reducingthe cycle time required to consummate the marketing transaction.
 61. Themethod of claim 60, further comprising: offering a flat rate charge forthe services; offering a period of time within which the flat ratecharge shall apply; defining the user's charge based upon the flat ratefor the period of time; and offering unlimited access to the wirelesscommunications services for the flat rate during the period of time. 62.The method of claim 60, further comprising offering the wirelesscommunications services through mass merchandising channels of trade.63. The method of claim 60, further comprising offering the wirelesscommunications services in a self-contained package format.
 64. Themethod of claim 63, wherein the self-contained package format furthercomprises a wireless handset, and the material information pertaining tothe offering on the outside of the package.
 65. The method of claim 61,further comprising: offering the wireless communications servicesthrough mass merchandising channels of trade; and offering the wirelesscommunications services in a self-contained package format, wherein theself-contained package format further comprises a wireless handset, andthe material information pertaining to the offering on the outside ofthe package.
 66. The method of claim 60, further comprising offeringpre-programmed wireless handsets.
 67. The method of claim 60, furthercomprising offering a limited handset selection to the user.
 68. Themethod of claim 60, further comprising adapting the wirelesscommunications services to enable customer activation of the services.69. The method of claim 60, further comprising providing a wholesalediscount without commission or residuals.
 70. The method of claim 60,further comprising offering wireless handset with limited features. 71.The method of claim 60, further comprising maintaining wireless handsetinventory with the distributor.
 72. The method of claim 60, furthercomprising offering a wireless handset bundled with the wirelesscommunications services.
 73. The method of claim 60, further comprisingsimplifying the sales process.
 74. The method of claim 60, furthercomprising maintaining an acquisition cost per subscriber at less thanor equal to about $230.
 75. A method of marketing wirelesscommunications services to one or more subscribers, comprising: offeringa simplified rate plan, comprising a flat rate charge; simplifying themarketing offering; reducing the cycle time required to consummate themarketing transaction; providing pre-programmed wireless handsets;offering a limited handset selection; providing a wholesale discountwithout commissions or residuals; and receiving payment of the chargesubstantially before the wireless communications services are renderedto the subscriber.
 76. The method of claim 75, further comprising:offering a period of time within which the flat rate charge shall apply;defining the user's charge based upon the flat rate for the period oftime; and offering unlimited access to the wireless communicationsservices for the flat rate during the period of time.
 77. The method ofclaim 75, further comprising offering the wireless communicationsservices through mass merchandising channels of trade.
 78. The method ofclaim 75, further comprising offering the wireless communicationsservices in a self-contained package format.
 79. The method of claim 78,wherein the self-contained package format further comprises a wirelesshandset, and the material information pertaining to the offering on theoutside of the package.
 80. The method of claim 76, further comprising:offering the wireless communications services through mass merchandisingchannels of trade; and offering the wireless communications services ina self-contained package format, wherein the self-contained packageformat further comprises a wireless handset, and the materialinformation pertaining to the offering on the outside of the package.81. The method of claim 75, further comprising adapting the wirelesscommunications services to enable customer activation of the services.82. The method of claim 75, further comprising offering a wirelesshandset with limited features.
 83. The method of claim 75, furthercomprising maintaining wireless handset inventory with the distributor.84. The method of claim 75, further comprising offering a wirelesshandset bundled with the wireless communications services.
 85. Themethod of claim 75, further comprising simplifying the sales process.86. The method of claim 75, further comprising maintaining anacquisition cost per subscriber at less than or equal to about $230. 87.A method of marketing wireless communications services to one or moresubscribers, comprising: offering a simplified rate plan, the simplifiedrate plan comprising a low fixed monthly charge for unlimited access tothe wireless communications services; simplifying the marketingoffering, the marketing offering comprising a standardized wirelesshandset selection and limited features; reducing the cycle time requiredto consummate the marketing transaction by offering the wirelesscommunications services in a self-contained package format, theself-contained package format further comprising the wireless handsetand material information about the marketing offering printed on theproduct packaging adapted to be acceptable to the potential subscriber;providing pre-programmed wireless handsets; providing a wholesalediscount, without commissions or residuals; offering features for thewireless handset that are familiar to the subscriber and that do notrequire training; and maintaining wireless handset inventory with adistributor.
 88. The method of claim 87, further comprising offering thewireless communications services through mass merchandising channels oftrade.
 89. The method of claim 87, further comprising adapting thewireless communications services to enable customer activation of theservices.
 90. The method of claim 87, further comprising offering awireless handset bundled with the wireless communications services. 91.The method of claim 87, further comprising simplifying the salesprocess.
 92. The method of claim 87, further comprising maintaining anacquisition cost per subscriber at less than or equal to about $230.